The Trend Projection approach to forecasting is represented by ...

[jc611]

The Trend Projection approach to forecasting is represented by
 
  A) time-series regressions.
  B) exponential smoothing.
  C) opinion polls.
  D) All of the above

Question 2

The above figure shows the demand and supply curves in the market for milk. Currently, the market is in equilibrium.
 
  If the government imposes a 2 per gallon tax to be collected from sellers, calculate the dead weight loss associated with the tax, and explain why the dead weight loss occurs.

[macybarnes]

Answer to Question 1

D

Answer to Question 2

The deadweight loss equals .5  2  500  500. The deadweight loss occurs because the tax lowers the output from the competitive level. At the output level that occurs with the tax, consumers value the last unit of output by more than it costs to produce that unit.