Green et al. (2005) estimate that the demand elasticity is -0.47 and the long-run supply elasticity is 12.0 for almonds. The corresponding elasticities are - 0.68 and 0.73 for cotton and - 0.26 and 0.64 for processing tomatoes.If the government were to apply a specific tax to each of these commodities, what incidence would fall on consumers?The incidence of a specific almond tax that would fall on consumers is percent. (Enter numeric responses using real numbers rounded to one decimal place.)eid clothing - Google Search2WO stvMacBook Air80DIIDDescF1F2F3F4F6F7FBF9F10!@#$&1234678QWETYUtabASDFGH.Jcaps lock....この

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Answered: Green et al. (2005) estimate that the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain and demonstrate using appropriate examples how elasticity when it is zero is applied at the level of the government with respect to the setting of prices for various types of goods and services.
Suppose that a lumber-producing firm had a demand for the ability to burn sawdust given by: Q = 90- P. Where Q is amount of sawdust burned when the firm has to pay price (P) per unit of sawdust burned. Calculate the quantity of sawdust burned if there is a per unit tax of $26 per unit of sawdust burned. (Do not include a $ sign in your response. Round to the nearest 2 decimal places if necessary.) Answer: Check
The state of Colorado's excise tax on beer is 8 cents per gallon. Suppose that the excess burden created by this tax is $40 million. If the tax is increased from 8 cents to 12 cents per gallon, what will be the new excess burden in this market? (The answer is $90 million)
The supply of book is perfectly elastic at a price of 200. The demand curve of consumer is given by the function Q=30000000-125000P, suppose that a 80 percent subsidy is imposed on the producer of book. calculate the excess burden resulting from the tax
If Congress prohibited the sale of Japanese luxury cars like Lexus, Acura, and Infiniti, how would this affect the price elasticity of demand for Mercedes, BMWs, and Jaguars in the U.S.?
The Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale.Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf. q4- Has the government revenue increased or decreased? Explain the change using the concept of elasticity.
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?
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The price elasticity of demand for beer among young adults (age 18 to 24) is about 1.30, and the number of highway deaths is roughly proportional to the group’s beer consumption. If a state imposes a beer tax that increases the price of beer by 20%, by how much will the number of highway deaths among young adults decrease?
Suppose that at equilibrium, the price elasticity of demand for wheat is -1.5 and the price elasticity of supply is 0.5. If the government imposes a price ceiling that is 12% below the equilibrium price, this price constraint will lead to: A) A shortage equal to 24% of the equilibrium quantity B) A surplus equal to 24% of the equilibrium quantity C) A shortage equal to 2.4% of the equilibrium quantity D) A surplus equal to 2.4% of the equilibrium quantity
Question 2e - part 2 Given the following information Q = 240 - 5P Qs = P where Q, is the quantity demanded, Qs is the quantity supplied and Pis the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Seller's pnice after tax
Discuss if it more useful for governments to have knowledge of the price elasticity of demand or the income elasticity of demand for certain products.

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