EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 11, Problem 7RQ
To determine
The government fixed a per unit tax on the output of a
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In 1996, Florida voted on (and rejected) a $0.01-per pound excise tax on refined cane sugar in the Florida Everglades Agricultural Area. Swinton and Thomas (2001) used linear supply and demand curves (based on elasticities estimated by
Marks, 1993) to calculate the incidence from this tax given that the market is competitive. Their inverse demand curve was
p=1.787 -0.0004641Q,
and their inverse supply curve was
-0.4896 + 0.00020165Q.
p=-
(Hint: The incidence that falls on consumers is the difference between the price with and without the tax divided by the tax.)
Calculate the incidence of the tax that falls on consumers for a competitive market.
The incidence that falls on consumers in a competitive market is 70.0 percent. (round your answer to one decimal place)
If producers joined together to form a monopoly, and the supply curve is actually the monopoly's marginal cost curve, what is the incidence of the tax?
The incidence that falls on consumers is percent. (round your answer to…
Suppose that the government instituted a per-unit tax on the output of a monopoly firm.
A. graph this situation?
B. On the same graph show what would happen to the market equilibrium after implementation of such a tax?
C. On the same graph how would you show which economic actor pays most of the tax?
You are to not only draw the graph but also explain the answer
Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, what price per subscription should it charge per month?
Chapter 11 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 11.2 - Prob. 1TTACh. 11.2 - Prob. 2TTACh. 11.2 - Prob. 1MQCh. 11.2 - Prob. 2MQCh. 11.2 - Prob. 1.1MQCh. 11.2 - Prob. 2.1MQCh. 11.3 - Prob. 1MQCh. 11.3 - Prob. 1TTACh. 11.3 - Prob. 2TTACh. 11.4 - Prob. 1TTA
Ch. 11.4 - Prob. 2TTACh. 11.4 - Prob. 1MQCh. 11.4 - Prob. 2MQCh. 11.4 - Prob. 1.1TTACh. 11.4 - Prob. 2.1TTACh. 11.4 - Prob. 1.2TTACh. 11.4 - Prob. 2.2TTACh. 11.5 - Prob. 1MQCh. 11.5 - Prob. 1TTACh. 11.5 - Prob. 2TTACh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - Prob. 11.1PCh. 11 - Prob. 11.2PCh. 11 - Prob. 11.3PCh. 11 - Prob. 11.4PCh. 11 - Prob. 11.5PCh. 11 - Prob. 11.6PCh. 11 - Prob. 11.7PCh. 11 - Prob. 11.8PCh. 11 - Prob. 11.9PCh. 11 - Prob. 11.10P
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