VerdanaBIUA|= = ==|=|=、m、同1.2.14 17Energy drinks have been causing death.To discourage the energy drinks market, lawmakers, including Senator Miller (D-CA), have called foran aggressive tax on energy drinks. The Miller Bill would place a two dollar tax on energy drink tallcans (that on average cost $2.50) in all American markets. Other members of Congress led bySenator Cruz (R-TX), however, believed that tax to be too high, so the Miller Bill was amended todecrease the size of the tax to just one dollar.1. Draw a graph with demand curve, supply curve, equilibrium price and quantity, tax price, taxincidence, tax revenue, and deadweight loss. Sen. Cruz claims that this smaller tax stillaccomplishes the goal of destroying the market for energy drinks, while Sen. Millervehemently disagrees, stating that energy drinks will still be consumed, but to a lesser extent.Which senator is correct, and how can you tell from the graph?I1:229,

The equilibrium price is Pe and the corresponding equilibrium quantity is qe at the original demand…

1. Draw a graph with demand curve, supply curve, equilibrium price and quantity, tax price, tax incidence, tax revenue, and deadweight loss. Sen. Cruz claims that this smaller tax still accomplishes the goal of destroying the market for energy drinks, while Sen. Miller vehemently disagrees, stating that energy drinks will still be consumed, but to a lesser extent. Which senator is correct, and how can you tell from the graph?

1. Draw a graph with demand curve, supply curve, equilibrium price and quantity, tax price, tax incidence, tax revenue, and deadweight loss. Sen. Cruz claims that this smaller tax still accomplishes the goal of destroying the market for energy drinks, while Sen. Miller vehemently disagrees, stating that energy drinks will still be consumed, but to a lesser extent. Which senator is correct, and how can you tell from the graph?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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kad has estimated the following demand relationship for its product over the last four years, using monthly observations: ln qt = 4.932- 1.238 ln pt + 1.524 ln yt-1 + 0.4865ln qt-1 (2.54) (1.38) (3.65) (2.87) r 2= 0.8738 where q = sales in units, p = price in rs., y is income in rs,000, and the numbers in brackets are t-statistics. a. interpret the above model. b. make a sales forecast if price is rs. 9, income last month was rs. 25,000 and sales last month were 2,981 units. c. make a sales forecast for the following month if there is no change in price or income. d. if price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.
3. Your marketing research department provides the following estimated demand function for your product: QD = 150 – 6.5P + 0.3Income, where P is the price of your product and Income is the average income of the consumers for your product. a. The T statistic for the price coefficient is -2.2. What can you conclude about the coefficients statistical significance? Explain.
Sales of sugar-sweetened beverages at stores in Seattle dropped about 30.5% in the monthsafter the city adopted a tax on such beverages, says a new study that also looked at sales atstores in Portland, which has no such tax.Sales in Portland declined only 10.5%, suggesting sales in Seattle dropped much more thanthey would have without a tax, according to the peer-reviewed study by University of Illinoisat Chicago researchers.The study’s results are the first to measure the impact of Seattle’s tax on beverage sales inthe city, and they may bolster claims by supporters that the controversial policy is workingas intended.“From a public health perspective, this is good,” said Jay Krieger, a University of Washingtonprofessor who heads the nonprofit Healthy Food America. “People are purchasing lesssugary drinks, and we know that sugary drinks are associated with heart disease, diabetes,high blood pressure and strokes.”Seattle’s tax of 1.75 cents per fluid ounce, which took effect on Jan. 1,…
The daily demand for Invigorated PED shoes is estimated to be Qdx = 100−3Px + 4Py − .01M + 2Ax where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income. Suppose good X sells at $25 a pair, good Y sells at $35, the company utilizes 50 units of advertising, and average consumer income is $20,000. Calculate and interpret the own price, cross-price, and income elasticities of demand.
The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Also, advise your government on recommended interventions in the cigarette market.
The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month. if the government ubsidizing renting a house with 300 euro per month.What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.
Over the last several decades improvements in computer software, hardware and robotics have dramatically altered the ability of machines to do complex repetitive tasks. Discuss the implications for semi-skilled skilled workersas a result of this improvement. Discuss how the cost of the new technology influences the choice of inputs used in production and the rate of adoption of the new technology. Can you please answer this question so there will be no plagiarism, you have answer for this question in your website, but more likely it is already copied by someone else
AD has estimated the following demand relationship for its product over the last four years, using monthly observations: ln Qt = 4.932- 1.238 ln Pt + 1.524 ln Yt-1 + 0.4865lnQt-1(2.54) (1.38) (3.65) (2.87)R2= 0.8738where Q = sales in units, P = price in Rs., Y is income in Rs,000, and the numbers in brackets are t-statistics.a. Interpret the above model.b. Make a sales forecast if price is Rs. 9, income last month was Rs. 25,000 and sales last month were 2,981 units.c. Make a sales forecast for the following month if there is no change in price or income.d. If price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.
You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.
Sales of sugar-sweetened beverages at stores in Seattle dropped about 30.5% in the months after the city adopted a tax on such beverages, says a new study that also looked at sales at stores in Portland, which has no such tax.Sales in Portland declined only 10.5%, suggesting sales in Seattle dropped much more than they would have without a tax, according to the peer-reviewed study by University of Illinois at Chicago researchers.The study’s results are the first to measure the impact of Seattle’s tax on beverage sales in the city, and they may bolster claims by supporters that the controversial policy is working as intended.“From a public health perspective, this is good,” said Jay Krieger, a University of Washington professor who heads the nonprofit Healthy Food America. “People are purchasing less sugary drinks, and we know that sugary drinks are associated with heart disease, diabetes, high blood pressure and strokes.”Seattle’s tax of 1.75 cents per fluid ounce, which took effect on…
Sales of sugar-sweetened beverages at stores in Seattle dropped about 30.5% in the months after the city adopted a tax on such beverages, says a new study that also looked at sales at stores in Portland, which has no such tax.Sales in Portland declined only 10.5%, suggesting sales in Seattle dropped much more than they would have without a tax, according to the peer-reviewed study by University of Illinois at Chicago researchers.The study’s results are the first to measure the impact of Seattle’s tax on beverage sales in the city, and they may bolster claims by supporters that the controversial policy is working as intended.“From a public health perspective, this is good,” said Jay Krieger, a University of Washington professor who heads the nonprofit Healthy Food America. “People are purchasing less sugary drinks, and we know that sugary drinks are associated with heart disease, diabetes,high blood pressure and strokes.”Seattle’s tax of 1.75 cents per fluid ounce, which took effect on…
It is known that the ABC oil company supplies consumers with 150 tons of products per day. The company produces only two types of products - gasoline and diesel fuel. The limiting transformation ratio of diesel fuel relative to gasoline is 0.5. a) Draw a line of the company's monthly production capacity for gasoline and diesel. b) With the advent of new technologies, production increased by 20%, and the availability of gasoline increased by 30%. Explain how the company's new product line differs from the previous one. c) If we put the gasoline production on the X-axis of the graph, what percentage of the slope capacity of the production line is different from the slope ratio of the previous production line?