Suppose demand for gasoline is given by P=20-2Q and supply for gasoline is given by P=Q. Further suppose that the government decides to impose a tax on gasoline of $2. What is the equilibrium price and quantity after the tax is imposed? OP=$8, Q=6 OP-$7.33, Q-5.33 OP-$6.66, Q-6.66 P=$8.66, Q-8
Q: Which of the following statements is most true? Consumers will pay 1/3 of the tax Producers will…
A: The given diagram shows supply and demand curves. S0 is the initial supply curve and S1 is the…
Q: If the total load is shared among the three power plants equally, what is power of each power plant…
A: a) If the total load is shared among the three power plants equally, what is the power generation of…
Q: 12 of 20 Certain monies received by members are deemed to be trust funds. What are they? All funds…
A: The query relates to a particular area of financial regulation in the insurance sector, namely the…
Q: Price (Dollars per unit) 0.00 0.50 1.00 1.50 2.00 2.50 Show Transcribed Text Quantity Demanded…
A: Equilibrium price, in economics, refers to the price at which the quantity of a good or service…
Q: 19 Quantity of Output 0 1 2 3 4 5 Multiple Choice Total Cost $250 260 290 350 480 700 O At Its…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: Utilize the following information to answer the following question, which assumes perfectly…
A: Assumes market is perfectly competitive.Wage or marginal factor cost (MFC) = $40. Price of goods…
Q: Now show the change in the market for a used S.U.V. that is consistent with the following statement:…
A: ExplanationDemand Curve (Blue Line):This represents the relationship between the price of gasoline…
Q: Allina opens an exotic bakery. Her capacity for the month is eight hundred (800) Love Cherry Short…
A: Let's break down the problem step by step:Variables:Let C represent the total cost function.Let R…
Q: LF Which of the following reasons could cause the supply curve for loanable funds to shift to the…
A: The supply curve for loanable funds can shift to the left due to several factors that influence the…
Q: 17. Problems and Applications Q3 Suppose the price elasticity of demand for heating oil is 0.1 in…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $11,000 for shipping,…
A: Life cycle costing is the total addition of all expenses to be incurred by the buyer of the asset…
Q: Was there an error in calculation of average productivity? Since Function q = 10 L - 80 - 0.2L^2…
A: Average Labor Productivity (ALP):ALP is given by the ratio of total output (q) to the quantity of…
Q: This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world…
A: The world price is $100. The tariff imposed by domestic countries on trade is 30. The world price…
Q: Your sole objective as CEO is to maximise profit for the airline. Under this assumption, would you…
A: Some airlines can also adopt a method of compromising their economic system magnificence offerings…
Q: ♫ Suppose p'(r) < at some r. Explain in words why this does not happen in equilibrium and how…
A: In utility analysis, the derivative of the utility function with respect to a specific variable (in…
Q: The four-firm concentration ratio for the national industry does not capture the effects of all of…
A: 4-Firm Concentration Ratio (CR4): This ratio calculates the total market share of the four largest…
Q: in the town of Externalia, vaccination programs create additional benefits to the community, beyond…
A: Demand curve is the downward sloping curve Supply curve is the upward sloping curve. Equilibrium is…
Q: The market demand for wheat is Q = 100 - 2P + 1Pb, in which Q is the quantity demanded of wheat, P…
A: The demand equation for wheat: Pb is the price of barley and Q denotes the quantity of wheat.The…
Q: The figure shows the market for game day t-shirts. If the price of t-shirts is $8, then OA. the…
A: Equilibrium refers to market situation when quantity demanded is equal to quantity supplied.Also…
Q: An industrial plant is considering the purchase of a centrifugal pump. Three offers were received…
A: The annual cost of owning, using, and maintaining a resource over the course of a resource's life is…
Q: Complete the following table with the quantity of labor supplied and demanded if the wage is set at…
A: Complete the following table with the quantity of labor supplied and demanded if the wage is set at…
Q: 5. Consider the following demand function for airline tickets (quantities are in thousands): Q =…
A: Cross price elasticity is calculated as the percentage change in quantity of one good divided by the…
Q: 3. Assuming wages and resource prices are flexible, show how each economy below will self-adjust in…
A: Positive negative gap occurs when the current output is greater than the potential output, whereas…
Q: The equilibrium conditions for three related products simplify to the following 15P1 – 4P2 – 7P3…
A: Equilibrium refers to a state of balance or stability in a system where opposing forces or factors…
Q: ommunication Equipment Two sectors of the U.S. economy are (1) audio, video, and communication…
A: An input-output matrix, also known as an input-output table or IO table, is a structured…
Q: 2. Symbolic Consumer Choice: Patrick lives in a simple world where there are only two consumer…
A: Consumer choice refers to the decision-making process that individuals or households go through when…
Q: Suppose that prior to Hurricane Irma, the market price for a generator in Florida was $530. Afte ma,…
A: Market price is found out by the intersection of demand and supply.
Q: Use the graph below to answer the following questions. Inflation Rate D A Curve 1 F C B Curve 2…
A: The Phillips Curve is a concept in macroeconomics that illustrates an inverse relationship between…
Q: RIBU Council currently com e (9) members, all of whom are elected in en (7) members all of whom are…
A: The RIBO (Registered Insurance Brokers of Ontario) Council membership is the topic at hand. It…
Q: it says that the answer is wrong. can you please redo?
A: A lump-sum tax is a set amount of tax applied, regardless of the quantity of goods produced or…
Q: K Consider the following data: Country A B С Population. (millions) 11 20 4 Real GDP ($ billions) 52…
A: Gross domestic product refers to the final value of all goods and services produced in a territory…
Q: Choose the correct statement A. We measure the change in production by comparing nominal GDP…
A: GDP refers to the total monetary value of all final goods and services that producer by a nation in…
Q: The two firms' first-order conditions are
A: The first order condition (FOC) is used to find the optimal decision for a firm. It’s derived from…
Q: Which of the following is required to construct a consumer price index? The choice of a base year in…
A: The Consumer Price Index (CPI) is a key economic indicator that gauges the average change in prices…
Q: A machine that have the following costs is under consideration for a new manufacturing process.…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded…
A: Budget balances in macroeconomics refer to the difference between a government's total revenue and…
Q: Place the orange line (square symbol) on the following graph to show the most likely long-run supply…
A: Supply curve is the upward sloping curve. Elasticity measures the change in quantity due to change…
Q: The following graph illustrates the demand curve facing a single-price monopolist. Suppose the…
A: The total revenue is calculated by multiplying the price with the qunatity prouced.Marginal Revenue…
Q: Now summarize your results. Enter values for each of the following prices: 19) Profit maximizing…
A: For any producer in the market profit maximizing point is achieved where the marginal revenue from…
Q: Given a demand curve of P = 1200 - 40Qd and supply of P = 200 + 10Qs and a binding price control at…
A: Demand equation: Supply equation: Binding price control is at $291.This price control can be a price…
Q: Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus? Figure 4-1…
A: Demand curve is the downward-sloping curve. Supply curve is the upward-sloping curve. Equilibrium is…
Q: Directly or indirectly making an agreement as to the premium to be paid other than as set forth in…
A: The query you submitted has to do with insurance laws and the idea of misbehavior in the insurance…
Q: Which of the following can result in a reduction of unemployment? A. Increased population growth B.…
A: Output represents the total amount of produced in an economy at a given period of time and…
Q: Price of cheese $/16 $20 $10 $2 O 15 S Quantity of cheese (165) Refer to the diagram above. The…
A: A typical demand curve is a downward-sloping curve that portrays the negative connection between the…
Q: consumption
A: We can start by looking at the demand and marginal cost functions of the two items, X and Y, to see…
Q: Consider the following equation for an economy's debt dynamics Ab(t) = (g(t)-nt(t))-(gy-i)b(t-1)…
A: Economy's debt dynamics refer to the patterns and changes in a country's level of debt over time. It…
Q: M 40k 30 20 10 12 10 200 100 59 10 O250 Q=100 Isoquant 15 As a production process requires labor L…
A: A production function in economics is a mathematical equation or relationship that shows how inputs…
Q: Consider two distinct countries, denoted as A and B. Initially, Country A had a per capita GDP of…
A: To determine which country will have a higher per capita GDP when t=35 time periods (years), we can…
Q: In the United States, what percent of gross domestic product does international trade account for?…
A: International trade is the exchange of goods and services between countries. It is an important…
Q: cheese sandwiches and grilled chicken sandwiches. Which of the following statements is false?
A: A firm will maximize profit at a point where marginal utility per dollar for two goods are equal and…
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer.
Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Step by step
Solved in 3 steps with 5 images
- Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qs. At a glance, can you tell whether supply or demand is more price elastic in equilibrium? How? What does this tell you about who will pay more of a tax on this product? (DO NOT DO ANY MATH)Suppose an economist estimates the price elasticity of demand for instant noodle is -2.4, while its price elasticity of supply is 4.0. If the government decides to impost a per-unit sales tax of $16 per pack of instant noodle, how would the market price for instant noodle be affected? Show your calculation.Suppose the income elasticity of demand for food is 0.5 and the price elasticity of demand -1.0. Suppose also that your housemate Claire spends $10,000 per year on food, that the price of food is $4, and that her income is $50,000. a) If a $4 sales tax on food were to cause the price of food to double, how much food would Claire’s consume? b) Suppose she is given a state sales tax rebate of $5,000 to ease the effect of the tax. Now how much food would she eat? c) Briefly discuss how you know whether she would be better or worse off when given a rebate to the sales tax payments?
- The demand and supply equations for a product are: Q= 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 Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producer surplus, and deadweight loss.Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qs. At a glance, can you tell whether supply or demand is more price elastic in equilibrium? How? What does this tell you about who will pay more of a tax on this product?The figure below represents the market for Gasoline, where initially the equilibrium price was $5.60. The picture shows the effect of a $1.50 tax on gasoline. Using the information from the figure, what is the price elasticity of demand(Using the Midpoint method) when moving from equilibrium to the new demand after the tax?(Input the answer in absolute value and round it to 2 decimal places)
- Daily demand for gasoline at a Gas Station is described by Q = 980 - 300p, where Q are gallons of gasoline sold and p is the price in dollars. Gas Station's supply is Q = -2,980 + 3,000p. Suppose the state government places a tax of 18 cents on every gallon of gasoline sold. (a) What are the before-tax and after-tax equilibrium quantities of gasoline Q? (b) What are the changes in consumer's and producer's surplus due to tax? (c) What is the deadweight loss resulting from this tax?Suppose an economist estimates that the price elasticity of supply for red wine is2.4 while its price elasticity of demand is -4.0.If the government decides to impost a per-unit sales tax of $40 per bottle of redwine, how would the market price for red wine be affected? Show yourcalculation.Suppose that the price elasticity of demand for a packet of cigar is -0.85 and the price elasticity of supply is 1.5 at market equilibrium. As a result of an increase on sales tax, the new equilibrium price rises by 15%. (a) What is the percentage change in quantity demanded of cigar? Show your calculation.
- True or False: Suppose you are advising the Dairy Farmers of Canada on changes in the milk market. Suppose the current price is $4.5 per gallon of milk and the quantity demanded is 2.5 million gallons of milk per day. Suppose price elasticity of demand is constant at 0.7. You are considering reducing the supply, so that the price rises to $5 per gallon. Total expenditure on milk by consumers will rise.In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. 1. What is the equilibrium price and quantity? 2. What is the price elasticity at a price of £35? 3. What do you expect will happen to total expenditure on this good if the price increases from £35 to £40? Is this expectation confirmed if you calculate the total revenue for each price?A city government decides to tax hotel rooms to raise money. Before the tax, 1000 rooms were typically rented out per month. After the tax, the number of rooms rented per month falls to 900, the amount paid by hotel guests rises to $130 and the amount received by sellers falls to $110 per room. If the price per hotel room was $100 per night before the tax, which of the following can we conclude? The supply of hotel rooms is more price elastic than is the demand The demand for hotel rooms is more price elastic than is the supply The supply of hotel rooms after the tax is greater than the demand for hotel rooms The demand for hotel rooms after the tax is greater than the supply of hotel rooms We cannot conclude any of the options given with only the information provided.