Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 17, Problem 12APA
(a)
To determine
The outcome of the trip when Ms. B drives the car.
(b)
To determine
The outcome of the trip when Ms. A drives the car.
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Using a diagram, explain how a carbon tax could help reduce pollution.
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Problem Set 2
A. Suppose the demand and supply for the market of cigarettes in a city is given by QD = 400-50P,
Qs = 50P.
1. Graph the demand and supply curves. What is the market equilibrium price and quantity?
2. The city council wants to discourage smoking. If the socially optimal demand for cigarettes is
QD 200-50P, what can the city council do to achieve the socially optimal demand?
3. What is the quantity of cigarette sold after the government takes appropriate actions? How much
do consumers pay and how much do producers get? Is the government action effective in its objective of
discouraging cigarette consumption?
B. Suppose the local gas station in a small town sells regular gasoline at $4/gallon. The gas station sells
100 gallons in a day. Due to global gas prices, it increased the price to $5/gallon. The next day, the gas
station is only selling 90 gallons a day
1. Using these two points, calculate the price…
ASAP plz
Why don't people/stores make different decisions? Cost is a factor: a case of foam take-out containers costs $25, compared with $58 for paper and recyclable-plastics. How does this affect the firm's profit? Are consumers willing to pay more?
Negative externality
Consider the demand and supply given above. Suppose there is an external cost given by MEC=5Q. Find social equilibrium price and quantity. Draw a graph and label both private and social equilibrium.
Chapter 17 Solutions
Macroeconomics
Ch. 17.1 - Prob. 1RQCh. 17.1 - Prob. 2RQCh. 17.2 - Prob. 1RQCh. 17.2 - Prob. 2RQCh. 17.2 - Prob. 3RQCh. 17.2 - Prob. 4RQCh. 17.3 - Prob. 1RQCh. 17.3 - Prob. 2RQCh. 17.3 - Prob. 3RQCh. 17.4 - Prob. 1RQ
Ch. 17.4 - Prob. 2RQCh. 17.4 - Prob. 3RQCh. 17.4 - Prob. 4RQCh. 17 - Prob. 1SPACh. 17 - Prob. 2SPACh. 17 - Prob. 3SPACh. 17 - Prob. 4SPACh. 17 - Prob. 5SPACh. 17 - Prob. 6SPACh. 17 - Prob. 7SPACh. 17 - Prob. 8SPACh. 17 - Prob. 9SPACh. 17 - Prob. 10APACh. 17 - Prob. 11APACh. 17 - Prob. 12APACh. 17 - Prob. 13APACh. 17 - Prob. 14APACh. 17 - Prob. 15APACh. 17 - Prob. 16APACh. 17 - Prob. 17APACh. 17 - Prob. 18APACh. 17 - Prob. 19APACh. 17 - Prob. 20APACh. 17 - Prob. 21APACh. 17 - Prob. 22APACh. 17 - Prob. 23APACh. 17 - Prob. 24APACh. 17 - Prob. 25APACh. 17 - Prob. 26APACh. 17 - Prob. 27APACh. 17 - Prob. 28APACh. 17 - Prob. 29APACh. 17 - Prob. 30APA
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