Beatriz enjoys writing and uses a large amount of paper. Currently, paper costs 2 cents per sheet. The formula for her demand curve is S = 52500 – 5000PS, where PS is the price of and S is the number of sheets purchased. The governor of her state proposed taxing paper at the rate of $0.50 for each 100 sheets. Assume that this policy would increase the price of paper to 2.5 cents per sheet (including tax) a. Draw Beatriz demand curve. Using the method described in Section 6.2, compute the change in her consumer surplus for the proposed tax increase.
b. How much revenue will the government raise by taxing Beatriz? How does that revenue compare to her economic losses? Does the new tax raise enough revenue for the government to compensate her for her loss?

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups. b. we cannot infer anything from these data since the distribution of salaries is likely right skewed. c. you cannot draw any valid conclusions because the sample sizes are different. d. more students should complete internships because having an internship produces a higher salary.