Suppose a good costs $5. Then, the government imposes a $2 tax on the good. What will the after-tax price be? (Give a range if you can't determine an exact value.) Assume the demand curve is steeper than the supply curve. Who will be burdened more by a tax?
Q: B. Perfectly elastic demand; buyers pay an excise tax Demand: P = 12 Supply: P = 4 + ½Q Tax per unit...
A: If an excise tax of $4 is imposed the consumers will pay $4 more than the producers. So, Pb=Ps+4, w...
Q: (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio ...
A: CONTRIBUTION MARGIN " IT SHOWS THE AGGREGATE AMOUNT OF REVENUE AFTER VARIABLE COST TO COVER FIXED E...
Q: explain State policies that mandated the release of physician report cards were greatly beneficial t...
A: Several states have begun publishing hospital report cards as a result of state legislative mandates...
Q: A downtown bar serves a drink that UCSB students love. The profit-maximizing owner knows that any gi...
A: Student demand, p = 14-q Non-student demand, p = 6-q Large package of 12 drinks Small package of 4 ...
Q: what is the following pricing strategy or price discrimination approach? Unauthorized ticket specula...
A: a) Bundling Varying units of a product are offered at different prices in this kind of price discrim...
Q: A machine's annual maintenance costs P18,000. If the cost of creating a forging is P90 and the selli...
A: The Break-even point is when Total Revenue is equal to Total Cost (TR=TC). Maintenance cost = 18000...
Q: Notes A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the de...
A: We will answer the first question since the exact one was not specified. Please submit a new questio...
Q: LRAS You The long run aggregate supply (LR AS) diagramatical function is vertical because: I. The na...
A: Long run aggregate supply (LRAS) is a theoretical concept and refers to the output that an economy c...
Q: A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What a...
A:
Q: 57. The three broad types of productive resources are
A: To find : What are three types of productive resources.
Q: 2. Individual demand and consumer surplus Consider the market for antique cars. The market price of ...
A: Meaning of Consumer Surplus: The term consumer surplus refers to the situation under which the con...
Q: In a bilateral monopoly, suppose we have the following information: P = 1000 - 2Q (Demand) P = 100 +...
A: Introduction: A monopoly is a dominant position of an industry or a sector by one corporation, to th...
Q: D. As a result of an economic boom in Calgary, the average income increases from 2,800 to 7,700 per ...
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: What is the main feature of a perfect competitive market.
A: Perfect competitive market The term "perfectly competitive market" refers to a scenario in which a l...
Q: Consider an ISLM model given by these equations: Y = C + I + G C = 10 + Ya T = 10 G = 15 I = 5+÷Y – ...
A: (a) At equilibrium Y = C + I + G => Y = 10 + (1/2)Yd + 5 + (1/4)y -100i + 15 Note: Yd = Y - T =&g...
Q: (A). Define culture as it relates to international business (B). How is culture part of or influence...
A: Business when deals on the international level then it may be affected by many factors, cultural dif...
Q: A. Assume a market of a specific good. The demand and supply equation is as shown below: Po = 70 - 3...
A: Supply curve shows a positive relationship between price and quantity supplied. When Supply curve sh...
Q: The exact simple interest of P7,000 invested from April 28, 2002 to December 25, 2002 is P700. What ...
A: Simple interest is the total amount that is to be paid for using the borrowed money.
Q: Draw and AS-AD model of an economy suffering from unemployment. What is one fiscal policy that can b...
A: The aggregate demand curve shows the negative relationship between the price level and the total qua...
Q: The chief executive of the cafe chain Sweetwaters Coffee & Tea, said that because buying a cup of co...
A: The elasticity of demand refers to a change in the quantity demanded due to a change in its price. T...
Q: Masks (Now). The easing Covid-19 pandemic is expected to reduce demand for medical masks this year,...
A: The 7th graph fits the best
Q: Explain how markets conditions in the short run.
A: The amount of time a company has been in business determines its output. The firm's production capab...
Q: An investment of P100,000 is expected to yield a regular annual net income of P25,000 per year for 1...
A: Given that: Benefit = 25000Investment, or P = 100000n = 10i = 10%
Q: Class Exercise No 1 • Given the following data in the table:- 1- Draw the curve where Y is vertical ...
A: Given: Points Y ...
Q: 2. During recessions, central banks tend to cut interest rates. You are interested in understanding ...
A: Gross domestic product (GDP): it is the overall output generated within an economy during a year. If...
Q: Why does the firm have to borrow the bank's liability rather than use its own? Explain briefly.
A: Start-ups and small businesses seeking to expand frequently have one thing in common: they require a...
Q: • The economic growth measures the ____. a. increase in PPP b. increase in education index c. increa...
A: Government has certain tax revenue available with them through which they have to carry out expendit...
Q: 59. Profits are A. O Residual payment B. O Pre-determined C. O Fixed contract D. O Always higher tha...
A: The distribution of income to the owners in the production process of the market or in any of the bu...
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $1...
A: Total Revenue Total revenue is the totality of a sales amount from all of its products and services ...
Q: Match the following situation to the best description in the pull-down menu: As the price of a good ...
A: (1) The supply curve depicts the direct relationship between the price of a good and the quantity su...
Q: a) Employ the skill circle model and calculate skill range, skill range and total labor cost per wor...
A: Workers = 240 Training cost (T) = $ 1260 / hr Wage (W) = $80 / hr
Q: The crowding-out effect works through interest rates and it tends to: a.Increase the effectiveness o...
A: When government raises its expenditure on investment, it leads to a rise in the aggregate demand in ...
Q: 61. Productivity of land can be raised by A. O Extensive cultivation B. O Intensive cultivation C. O...
A: Increasing productivity of land is very essential for the better production of various crops in it. ...
Q: Social fluidity is all about transformation that results from social actions and reactions in respon...
A: Concept Members from various classes have varied possibilities of landing in one destination class v...
Q: 1. A company wants to launch a new product. it is observed that the fixed cost of the new product is...
A: (1) D is the quantity of product produced. The fixed cost is $35,000 ------------------------------ ...
Q: or how long would P1,000,000 have to be invested at 5% simple interest for it to double its value? (...
A: Simple interest is a quick and simple way to figure out how much money you owe on a loan. The formul...
Q: Hira has Rs.1200 a week to spend on yogurt and mangoes. The price of yogurt is Rs.200, and mangoes a...
A: The budget line, additionally referred to as the budget constraint, exhibits all the mixtures of 2 c...
Q: Katie's preferences display completeness, transitivity, nonsatiation, and a diminishing marginal rat...
A: Katie's Previous: Income, M = 1000 Px = 10 Quantity of X = 30 units Total spent on X = 10*30 = 300 S...
Q: t is the property of indifference curve that no two ICs can intersect each other because: a. same ...
A: According to the ICs property that two ICs cannot intersect each other- The arcs of indifference ca...
Q: Name WTP (in Taka) Name WTA (in Taka) Rahim (RA) Karim (KA) Jack (JK) Jones (JO) Rahima (RM) Karima ...
A: Willingness to pay (WTP) is the maximum amount that an individual would pay to obtain a good. Willi...
Q: Co. wants to launch a new p 500. enue function for the sale of l the maximum profit of the co
A: The firm will maximise profit at a point where marginal revenue is equal to marginal cost.
Q: The relationship between output and eoyment is: O dirgct inverse Oup and down repeatedly constant
A: Firm hire labor in order to produce the required output and give them wages in exchange of their ser...
Q: Techiefy Co. wants to launch a new product. It is observed that the fixed cost of the new product is...
A:
Q: A pharmaceutical company that manufactures ascorbic acid tablets is investigating two produ options ...
A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and cas...
Q: Which of the following would increase the demand for beef? A.) lower pork prices B.) higher prices ...
A: The factors which affect the demand of a product are: 1. Price of substitute goods 2. Price of compl...
Q: "yy' y-..-... 2. Write down and briefly discuss the six Kaldor stylized facts about economic growth ...
A: Economic growth Kaldor factors have a significant impact on the interconnectedness of fundamental va...
Q: Question: Find The Equilibrium Quantity And Equilibrium Price Commodity Whose Supply And Demand Func...
A: The supply function is the mathematical expression of the relationship between supply and the factor...
Q: RO L(R,Y) Ms/P L1 a) Based on the graph above, discuss what would happen to the interest rate starti...
A: (Since you have a posted a question with multiple sub-parts, we will solve the first three sub-part ...
Q: 66. Which of the following input factor takes risk, innovates and coordinates
A: Following are the factors of production: 1. Capital 2. Land 3. Labor 4. Entrepreneur
Q: 4. Amy's utility level (U) depends on the amount of wealth (W) she possesses and it can be represent...
A: Utility function : U = 3Y0.5 Wealth in Bad state = 4,840, 000 Wealth in good State = 6,250,000
question attached! (: Thank you!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 on the cigarette sellers. By how much would buyers share the tax burden respectively? Show your calculation.At the current market equilibrium, the price elasticity of supply for a certain good is much lower than the price elasticity of demand. if the government imposes a $5 specific tax on this good, who will bear more of the burden of the tax?At the current market equilibrium, the price elasticity of demand for a certain good is much higher than the price elasticity of supply. If the government imposes a $2 specific tax on this good, who will bear more of the burden of the tax? Illustrate.
- The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight lossDoes a tax on buyers affect the demand curve?The demand and supply equations for a product are: Q* = 0.2 300 – 6P and Q' = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.
- If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?Suppose producers bear most of the burden of a specific tax of 20 cents on staplers. Which ONE statement best describes the supply and demand for staplers? Suppose sandals have an elastic own-price elasticity of demand. If price goes up by 2%, then what happens to quantity demanded?Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 Some economists believe that a sales tax, in general, is undesirable. Explain. Despite this, why do most countries still impose a tax on cigarette? Explain plausible arguments.
- Suppose the price elasticity of demand for smartphones is 0.5 (absolute value), while the price elasticity of supply is 1.9. If the government imposes a per-unit tax of $100 on the sellers of smartphones, how will the price and quantity transacted of smartphones change? Will the sellers or the buyers bear a larger tax burden? Will the market be able to achieve economic efficiency after the tax is imposed? Explain with a diagram.Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity supplied = 2p-4. What would be the price paid by consumers if there was a 6 dollar tax on tea?Suppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as increasing the parking requirements and setback requirements. Suppose there is a housing tax. What is the effect of this law on the PES for housing? What effect would this law have on the tax burden for buyers?