O Macmillan LearningUsing the information in the graph, answer thethree questions.What is the value of the efficient per-unit tax at the sociallyoptimal equilibrium?What are tax revenues at the socially optimal equilibrium,in millions?Price and cost (per pound)$201918171615141312111098765431I111L1111Tper-unit tax: $TFTtax revenues: $11i1T1111TTIIISocialmarginal costPrivatemarginal cost10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Fertilizer (millions of pounds per year)Demand

Tax is a mandatory payment to the government. The tax amount is spent on the economy through public…

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Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 2TY

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18. The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. aslhee or batoob A P. 1 F H. G MSB Q, Qi tax that leads to Qo CS PS tax revenue externality total surplus gqg 53 2Abbo20 (p re 9 boagns exrsLU ednsto 75 beLapor ent
Price $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 0 S-MCMC Quantity of pediatrician visits Dudy-110 D$30 M Tools OWL OWL © a. Assume that the correct level of subsidy is $60. The socially optimal level of pediatrician visits is: 350 visits b. Compared to the efficient outcome, graph the deadweight loss that would result from subsidies of $30 or $90. Instructions: Use the tools provided "DWL 30' and 'DWLgo' to illustrate the deadweight loss for each subsidy. Drag the points to move or resize.
The figure below shows market demand, social demand and market supply. What is the optimal per-unit tax/subsidy that will make the market efficient? Price b C $3 d Market Supply $2 $1 Market Demand 20 40 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. à $1 tax $2 subsidy $3 subsidy $1 subsidy Social Demand Quantity
What is producer and consumer surplus AFTET tax?
Graph the following data on social and market demand: Im pretty sure I have the graph correct but I am unsure how to find the anwsers to the questions. Price ($) 20 18 16 14 12 10 Market quantity demanded (units per month) 10 20 30 40 50 60 Social quantity demanded (units per month) 20 30 40 50 60 70 Does this product have external benefits or external costs? How large ($) is that externality
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8
11. Compared to a good with no externalities, a good with a negative externality will appear to have experienced a OIncrease in Supply ODecrease in Supply Olncrease in Demand ODecrease in Demand at each corresponding price...
37 $50 Supply $40 t of $30 E $20 F Price $10 Ceiling Demand $0 40 80 120 160 200 Quantity In the market shown in the diagram above, the government has imposed a Price Ceiling at $10. Assuming the original equilibrium at point E was socially optimal, the Deadweight Loss from the Price Ceiling would be Select one: а. $800 b. $200 c. $100 d. $400 Price
Figure 1. The graph depicts the market for plastic containers. Price 16- 14- 12- 10 8- 6 200 500 650 Social Cost Private Cost Demand Quantity Refer to Figure 1. In order to reach the social optimum, the government could O offer a subsidy of $8 per unit on the production of plastic containers. O impose a tax of $8 per unit on the production of plastic containers. O offer a subsidy of $4 per unit on the production of plastic containers. O impose a tax of $4 per unit on the production of plastic containers.
Commun U ASTRAL15963907 Su Home | Shöreline C E D Multiple Choice O Quantity Refer to the provided supply and demand graph for a product. In the graph, line S is the current supply of this product, while line St is the optimal supply from the society's perspective. One solution to this externality problem is to give consumers a subsidy of the amount FG per unit. tax producers by the amount DE per unit. give producers a subsidy of the amount AB per unit tax consumers by the amount EF per unit Seved Save
What exactly is a Pigovian tax? Give some instances of how the Pigovian tax can be used to tackle environmental issues.
Price per bin 120 110 100 90 80 70 60 50 40 30 20 10 $800 $900 $450 1 $1250 1 I 1 + V D The figure represents the market for apples. Assume there are no externalities. Suppose a sales tax of $40 per bin of apples is levied on consumers of apples. The after-tax supply curve is labeled S+t. What is the dollar amount of the REVENUE collected by this tax? To review this concept, see the section Taxes and Efficiency. S+t S 10 20 30 40 50 60 70 80 90 100 Bins of apples

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