Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? pls draw a diagram
Q: Quantity (pizzas per hour) Total cost, TC (dollars per hour) 18 30 48 1 2 3 12) Giuseppe's Pizza is…
A: Total cost refers to the cost of production a firm incurs at different levels of output.Marginal…
Q: Consider a two-person exchange economy in which person 1 owns 200 units of x and 100 units of y…
A: According to the First Welfare Theorem (FWT), a free market with complete markets, perfect…
Q: Shift the curve to show what is represented by each of the following types of inflation. a.…
A: Economists define inflation as rising general prices in an economy without a break, causing the…
Q: A firm uses the production technology q = (x + x2), where a is a constant and 0 p < 1. (a) Derive…
A: Given,Here,
Q: If the minimum required rate of return is 15%, which equipment should be selected?
A: An operating expense is a cost incurred by a company as a result of its regular operations.The…
Q: Refer to the table below. What is the total cost if the monopoly operates at the profit-maximizing…
A: The objective of the question is to find the total cost when the monopoly operates at the…
Q: Discuss the major causes of inflation in South Sudan
A: The objective of this question is to identify and discuss the major causes of inflation in South…
Q: T=80+0.25Y G = 420 IM 100+ 0.1Y X = 550 a. The trade balance (X - IM) when the government's budget…
A: Tax function: T=80 + 0.25YGovernment spending: G = 420Import function: IM = 100 + 0.1YExport…
Q: Which of the events in the table increase the equilibrium quantity of labor and which decrease the…
A: The equilibrium quantity of labor is determined by the intersection of the labor supply and labor…
Q: Norman and Gina consume food and clothing. In particular, Norman currently consumes 4 units of food…
A: An indifference curve is a graphical representation used to show different combinations of two goods…
Q: The graph shows the income-expenditure model for the country of Desireland, where AE represents…
A: The aggregate expenditure has consumption expenditure, investment expenditure, and government…
Q: According to IS-LM framework what policy should be adopted by State Bank of Pakistan to increase…
A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…
Q: cobb-douglas production
A: The Cobb-Douglas manufacturing function is a fundamental idea in economics used to explain the…
Q: 38. Which of the following describes judgments based on ethical principles that deal with fairness…
A: d. Justice Explanation:Approach to solving the question: Justice refers to decisions made on the…
Q: Consider a Solow economy where the technology is Cobb-Douglas and takes the form of Y₁ = A₁K¹²¯º Nê,…
A: Given,In the Solow economy, the CD production function is:Where,
Q: Examine the long-term economic impacts of climate change on global agricultural productivity.…
A: Climate change refers to significant and lasting alterations in Earth's climate patterns, largely…
Q: Kremi Ice Cream Factory manufactures vanilla ice cream and chocolate ice cream. There are times when…
A: As mentioned in the question, parts D, E, and F are solved.The supply curve graphically represents…
Q: Q Panel A Panel B Panel C Panel D Quantity Refer to the diagrams above. A perfectly inelastic demand…
A: Augustin Cournot, a French mathematician and economist, utilized the concept of "elasticity" in 1838…
Q: 3. Relationship between tax revenues, deadweight loss, and demand elasticity The government is…
A: Tax Revenue: Tax revenue refers to the total amount of money collected by the government through…
Q: Given f(x,y) = 2x2 - 6xy + 9y2, and Px= 7, Py= 5 and income, I = 175. Construct the budget…
A: The Lagrange function is important in utility theory because it helps solve optimization problems…
Q: C. Please draw and describe the shut-down point and the economic loss when the price is $4. Price 12…
A: ans is given in explanation section with graph so check out below.Explanation:Step 1: Step 2: Step…
Q: For a firm with market power, what is the marginal revenue gained when one more unit of output is…
A: The objective of the question is to understand the concept of marginal revenue for a firm with…
Q: Assume that a firm in a perfectly competitive industry has the following total cost schedule:…
A: Marginal cost is the change in total cost when an additional unit of output is produced.The average…
Q: Mr permise states I do not understand why anyone would suggest the use of taxes or regulations in…
A: Market efficiency refers to a theoretical state where markets allocate resources optimally. In this…
Q: The supply and demand of sugar are given as Qs = 5P, Qd = 250- P where Qs is tons…
A: Market dynamics are economic events that create a balance between supply and demand, causing price…
Q: 150 125 100 75 S 50 25 0 250 750 SMC D q 1250 The graph shows demand and marginal cost for a…
A: The Marginal Cost (MC) curve is a graphical representation of the relationship between the quantity…
Q: 2. Consider a consumer whose preference relation over the consumption set X = R³ can be repre-…
A: A utility function is a mathematical illustration that assigns a numerical value to the pleasure or…
Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…
A: Demand refers to the quantity of a good or service that a consumer is willing and able to buy at a…
Q: 2. 4.2 Calculate the value of X that makes the two alternatives equally desirable if the MARR is 9%.…
A: The objective of the question is to find the value of X (Uniform Annual Benefit for Alternative B)…
Q: Consider Product NE, which has a negative externality associated with its’ production and use (…
A: In the case of a negative externality, the supply curve cannot account for the total cost of the…
Q: A monopolist faces a demand equation given by P=20−Q�=20−�, a marginal revenue equation given by…
A: The objective of the question is to find the profit-maximizing price set by a monopolist. The…
Q: Use the graph on the right to sketch the budget constraint. 1.) Using the line drawing tool, sketch…
A: It represents the limit on a consumer's spending based on their income(M) and the prices(P) of…
Q: a) Complete the following table, assuming MPC is constant Consumption 60 220 National Income 0 200…
A: The objective of the question is to fill in the missing values in the table given the assumption…
Q: In terms of Classical Economics and not Keynesian: World trade has boosted growth rates in many…
A: Gross Domestic Product is a percentage of the total economic cost of all goods and services produced…
Q: Describe the demographic characteristics of the poor in the United States
A: Economic dynamics are greatly affected by poverty, which has an impact on worker productivity,…
Q: 2. In Application Question 5 of Chapter 3, we examined the market for DVDs where the supply and…
A: Price ceiling is the legal charged price and it is the maximum charged price by the government. The…
Q: De Beers Group, is considered monopoly because it controlled a large percentage of diamond…
A: The question is asking us to identify the type of barrier to entry that has allowed De Beers Group…
Q: Q.1. Use production function q(L, K) = L K and derive the followings: (a) (b) 360€ (c) (d) Short-run…
A: In economics, a production function is a means of examining the relationship between input and…
Q: The public smoking of cigarettes generates costs to society from second-hand smoke, therefore,…
A: The objective of the question is to identify the socially optimal equilibrium in the context of…
Q: Quantity Quantity Demanded Price Supplied 9 $ 11 13 10 10 12 11 9 11 12 8 10 13 7 9 14 6 15 5 8 7…
A: The concept of QS can be described as the particular amount of a commodity or service that producers…
Q: The following table lists the basket of goods in the Consumer Price Index for the nation of Astro…
A: To measure inflation, the weighted average of the cost of the basket of goods over years. This is…
Q: Suppose that Player 1's expected utility from playing always cooperate is u = 0 for all periods t =…
A: Expected utility is a concept in decision theory and economics that combines the perception of…
Q: Macmillan Learning new Y= $ Aggregate Demand I-Work It Out Question 1 In the Keynesian cross model,…
A: The given consumption(C) function is-The planned investment(I) is $100.The amount of government…
Q: A monopoly might form if which of the following conditions of perfect competition were violated?…
A: The question is asking us to identify which condition, if violated, could lead to the formation of a…
Q: Angela works on farmland owned by Bruno. The diagram illustrates their joint feasible frontier.…
A: Pareto efficiency, named after the Italian economist Vilfredo Pareto, refers to a state of…
Q: Suppose market value of condemned land is $100.00; special damage to remaining land is $20.00; and…
A: The objective of the question is to calculate the amount of compensation to the landowner when the…
Q: In the long run, firms in a monopolistically competitive market will earn __________ profits.…
A: The question is asking about the long-term profit outcomes for firms operating in a monopolistically…
Q: True or false: price guarantees (offers by firms to match any lower prices discovered at other…
A: An oligopoly is a market structure characterized by a small number of firms that dominate the…
Q: Most modern central banks engage in inflation targeting instead of aiming at some nominal level of…
A: Central bank refers to the institution of a an economy that uses its monetary policy to maintain the…
Q: There are three groups in a community. Their demand curves for public television in hours of…
A: The individual's ability to buy a product in the market is described as the demand. The consumer…
Suppose the
Q = 2P. Suppose the government announces a per-unit tax of 1 on the price
of butter. Tax on butter can be seen as a ’fat tax’. What is the overall effect
of a fat tax on the consumers? pls draw a diagram
Step by step
Solved in 1 steps with 1 images
- What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburger? Why or why not? Illustrate your answer with a graph.How would an increase in income for a normal good affect demand for the good? How would an increase in income for a normal good affect The demand curve for that good? Show graphically, i cantt figure out how to graph it
- 3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of gas is $4.00 per gallon. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a sedan 15 (Thousand of dollars) Quantity Demanded 563 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand 10 Price of Gas 4 (Dollars per gallon) 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) PRICE (Thousands of dollars per…The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…fl you know that Linda's consumption of potatoes fell from 200 pounds a year to 150 pounds a year when her income went up from $50,000 to $60,000 a year, you are able to calculate Linda's incomeelasticity of demand for potatoes. What is it? What do economists call this kind of a good?
- 1. 1pt. Mark appropriate circle for correct answer for matching term with its descriptions. Demand Demand Curve Quantity Demanded Law of Schedule Demand Definition A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices The amount of a good that buyers are willing and able to purchase at a given price A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at varlous prices The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises“A household’s decision about what quantity of a particular output, or product to demand depends on a number of factors.” Discuss the major factors affecting the demand. write in your own word as much as you canWhat is the difference between the supply andthe quantity supplied of a product, say milk? Explainin words and show the difference on a graph with thesupply curve for milk.
- Your friend Ginny really struggles with understanding graphs. She shows you the following illustration and asks for your help interpreting it: PRICE (Dollars per toothbrush) 10 9 8 7 6 2 1 0 O 0 Demand 1 D Slope: -1 Y-Intercept: 10 3 6 4 QUANTITY (Toothbrushes) 5 7 8 9 10 ? Fortunately, you recognize that the line on this graph is When your friend asks y represents the quantity of toothbrushes demanded at a price of $8 per toothbrush, you tell her the value represented by the letter X Y h valuePrice (dollars per can) 2.50 2.00 1.50 1.00 0.50 D 2 3 4 Quantity (cans of soda per day) The graph illustrates the demand curve for soda. After a rise in the price of a soda From $1.00 a can to $2.00 a can, the quantity of soda demanded A) decreases from 1 can to 0 cans a day. B) remains unchanged. C) increases from 0 cans to 2 cans a day. D) decreases from 2 cans to 0 cans a day.Question 35 To construct a market demand curve, for each unit of quantity, find the highest price a person in the market is willing to pay for that unit. O for each price, add up how many units each person in the market is able and willing to buy at that price. for each price, add up how many units people would want to buy at that price regardless of ability to pay. for each unit of quantity, add up how much each person in the market wants to pay for that unit.
