1. The assignment does not specify that the word limit is 750, excluding the math. We expect you to argue your view on Harberger’s estimates, illustrated with derivations using the model.
2. This assignment uses some mathematics that will be covered in detail in the course Mathematics 1 for Economics, in which the principal reference is Sydsaeter, K. and P. Hammond (2012), Essential Mathematics for Economic Analysis, Prentice Hall, 4th edition (ISBN 978-0-273-76068-9).
3. In the assignment it is specified that the parameters of demand and supply are “positive”, but this should be “non-negative” – a subtle difference that matters here in subquestion 19.
no external sources please but the articles should be used.