Suppose that in the market for ice cream, with a $5 per ice cream cone tax, the producer effective price for ice cream is $6. What is the consumer effective price for ice cream? $11 $1 $6
Q: Why is the United States and Iran conflict in the strait of hormuz important? and why does it…
A: A series of naval encounters between the US and Iran in the Strait of Hormuz occurred in December…
Q: Suppose GDP is $50,000, tax revenue is $20,000, and government spending is $40,000. What is…
A: Given: GDP=$50000 Tax revenue=$20000 Government spending=$40000
Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…
A: Salvage value is the assessed book worth of a resource after deterioration is finished, in view of…
Q: Composition Consumption Billion of Dollars 4900 Investment 1300 Government expenditures Exports…
A: Gross domestic product (GDP) is the market value of final goods and services produced by an economy…
Q: Explain the main features of exchange traded funds, including the creation/redemption process.
A: Individual investors have considered exchange-traded funds (ETFs) to be one of the most useful and…
Q: In short-run production where labor is a variable input, the relationship between marginal product…
A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…
Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…
A: A perfectly competitive firm produces at P =MC =AC in long run. C = y2 + 1 Differentiate C w.r.t y…
Q: Rival in Consumption? Yes No Yes A B. Excludable? No D Emma's use of good x does not affect anyone…
A: A good is classified as club good, public good, private good or common resource depending on the…
Q: What is Monopolistic Competition market structure – its main features
A: Under, the Monopolistic Competition, there are an enormous number of firms that produce separated…
Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…
A: Answer: Given, Total cost function: Cy=y2+1 Industry demand curve: Dp=36-2p The equilibrium number…
Q: Use the figure shown to answer the questions below Uz U3 U, 24 32 45 72 Income Currently the…
A: Given information Income=72 When accident income=24 Probability of accident=0.5625
Q: Uz Uz U4 Us 20 28 42 60 Income Currently the consumer has $60. If there is an accident their income…
A: Given a discrete random variable, and a function of that variable, the expected value of that random…
Q: For demand function Qd = a - bP and supply function Qs = dP - c , using Cramer’s rule determine…
A: At equilibrium, demand function (Qd) = supply function (Qs) Let say, (Qd) = (Qs) = Q Q = a - bP Q +…
Q: Consider that your profit-maximizing quantity of 200 can be produced at an average cost per unit of…
A: The total profit could be measured by the total revenue minus total cost. Given, Quantity = 200…
Q: If some of our largest trading partners were to fall into a recession, we would expect U.S.…
A: If some of our largest trading partners were to fall into a recession, we would expect U.S.…
Q: The following are extracts from the national income account of a country. COMPOSITION Compensation…
A: 1.
Q: Good Y O X and Y are complements X and Y are substitutes Not enought information to determine if X…
A: Complements are goods that are consumed together. Substitutes are goods where you can consume one in…
Q: What is meant by “excess sensitivity” of consumption? Is this view of consumption consistent with…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…
A: AC1 = Annual cost of old motortruck, and AC2 = Cost of new motortruck We know that, AC1 = (C1)i +…
Q: [16] Operating in the short run with one fixed input and one variable input, the marginal product of…
A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…
Q: Suppose that there are only two countries in the world: Localia (which is us), that uses the…
A: supply and demand, in financial aspects, the connection between the number of goods that makers wish…
Q: 9. The law of supply states that, other things equal or constant, when the price of a good falls,…
A:
Q: What does ceteris paribus means?
A: Economics means the condition of a group regarding its material prosperity.
Q: Describe the First Welfare Theorem.
A: NOTE: .We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Once people believe the Central Bank's commitment to keep unemployment at the natural rate, the…
A: In an economy, central bank can influence the expectations of the people using monetary policy,…
Q: Suppose that nominal GDP was $9000000.00 in 2005 in Montgomery County Maryland. In 2015, nominal GDP…
A: Given, Nominal GDP(current year) = $11500000 Nominal GDP(base year) = $9,000,000 Inflation = 2%…
Q: Suppose the value of a price index is 50 in 2015 and 60 in 2016. What is the rate of inflation from…
A: The rate of inflation can be calculated by dividing the difference between current inflation and…
Q: When decision-makers have time to fully adjust to changes in the overall price level, we refer to…
A: In Economics, Long-run and Short-run are the concepts related to the market where the equilibrimity…
Q: American Heart Association (AHA) announcement about corn Change in the demand for barley Change in…
A: Answer- (a) Change in the demand for barley.
Q: Price Supply A B World Price + tariff after trade Di E World Dri
A: Given market with tariff imposed in the market. A tarrif reduces the welfare with respect to fall…
Q: explains that specialization and trade makes people (and the world) better off. Please explain this…
A: Importance of specialization:- Specialization may improve productivity and give a company or nation…
Q: 1. How long will it take for an investment to triple at 10% per year (a) simple interest and (b)…
A: Given: Interest rate=10% Note: Due to multiple questions being posted, the first question has been…
Q: An estimator that is correct (i.e., it is equal to the true population parameter ) more than half of…
A: In economics, an estimator refers to a specfiic variable used by the researcher to get an estimation…
Q: Suppose the Machine rental rate decreases from $20 per hour to $10 per hour, while the rental rate…
A: Isoclines are curves on an isoquant map that pass through points with identical marginal rates of…
Q: Based on the condition and calculations, what is your conclusion on the marginal propensity to…
A: Given: Row 4: MPC=0.2 Spending multplier=1.25 Change in government spending=$800 Change in…
Q: III. True/False - Explain: 1) According to Walras Law excess demand in the money market would also…
A: 1. According to Walras law excess demand in money market would also be associated with an excess…
Q: demand function Qd = a - bP and supply function Qs = dP - c , using Cramer’s rule determine…
A: At equilibrium stage, Quantity demanded is equal to Quantity Supplied
Q: Given the following data: Nominal GDP ($ billion) Price Population (million) Year Index 2018 60 12…
A: The gross domestic product (GDP) is a monetary measure of the market value of all final goods and…
Q: 1) The Economy cannot be considered fully employed unless the measured unemployment rate is below…
A: Full employment is defined as a situation in which all people who are available and looking for work…
Q: 3. A nation consists of 2 political parties, Democrats and Republicans. The Democrats care more…
A: Phillip's curve equation : π = πe + 1.5(ut - 0.05 ) Probability of democrats winning = Probability…
Q: Explain in detail using diagrams the long- un adjustment mechanism for a perfectly competitive…
A: Pecuniary diseconomies occur when an increase in the production results in an increase in the price…
Q: Determine the breakeven suggested retail price for a manufacturer's new consumer product (CP). The…
A:
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the…
Q: What plan that suggest alternative steps when faced with issues or failure?
A: An activity plan is composed with the goal that any representative can do the assignment effectively…
Q: Consider the following functions: C=200+0.7Y What is the marginal propensity to consume?
A: The consumption function can be written as: C = a + bY C= Consumption a= Autonomous consumption b=…
Q: (1) For demand function Q, = a-bP and supply function Q, = dP-c , using Cramer's rule determine…
A: The Cramer's rule is a technique for using determinants to solve a system of linear equations.…
Q: c) an increase in aggregate demand and an increase in long-run aggregate supply
A:
Q: 2. A small-scale manufacturer can sell q number of units of each product produced per week at a…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: If 1000 Mexican pesos could buy $1.00 U.S. dollar in 2006 and 87 U.S. dollars in 2010, then: A. the…
A: Given: 100$=1000 mexican pesos
Q: The price elasticity of demand is a measure of
A: In economics, demand is defined as a customer's willingness and ability to consume a specific good.…
Step by step
Solved in 2 steps
- Suppose a local government imposes a tax on sales of firewood. Before the tax, 20,000 bundles were sold at an average price of $6 per bundle. With the tax in effect, 16,000 bundles are sold, buyers pay $6.40 per pack, and sellers receive $5.50 per pack. In this scenario, the tax is $____ per pack, the tax incidence that falls on buyers is $______ per pack, and the tax incidence that falls on sellers is $______ per pack.Suppose the equilibrium quantity in the market for baby formula is 1,000 per month when there is no tax. Then a tax of $0.50 per bottle is imposed. The effective price paid by buyers increases from $2.50 to $2.90 and the effective price received by sellers falls from $2.50 to $2.40. The government’s tax revenue amounts to $475 per month. Which of the following statements is correct? A. After the tax is imposed, the equilibrium quantity of diapers is 900 per month. B. The demand for diapers is more elastic than the supply of diapers. C. The deadweight loss of the tax is $12.50. D. The tax causes a decrease in consumer surplus of $380.Suppose that demand is given by: Q = 100-6p and supply is given by: Q = -2 + p Suppose that the government imposes a $10 tax per unit. How much of the tax do consumers pay?
- Suppose the market demand for milk is Qd = 40 – 4P Where Qd is millions of gallons demanded and P is price per gallon. Suppose the market supply for milk is Qs = - 40/3 + 20/3P As the tax rate doubles from $1 to $2 to $4, what happens to deadweight loss? a.Deadweight loss increases, but does not double with each increase. b.Deadweight loss exactly doubles. c.Deadweight loss more than doubles. d.Deadweight loss does not change.Figure 18-2 shows the widget market before and after an excise tax is imposed. What percentage of the tax per widget is borne by consumers, considering the true economic incidence of the tax?a. 0 percentb. 20 percentc. 50 percentd. 80 percentSuppose a $1 tax is imposed on cigarette manufacturers, which of the following will occur? Group of answer choices The price cigarette consumers pay will fall, more cigarettes will be purchased because of elastic supply, and a deadweight loss occurs. The price cigarette consumers pay will rise, fewer cigarettes will be purchased, and a deadweight loss occurs. The price of cigarettes will stay the same. The price cigarette consumers pay will rise, more cigarettes will be purchased because of inelastic demand, and consumers benefit from this tax.
- Suppose the demand for a product is given by P = 100 – 2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, what proportion of the tax will be paid by the buyers?. Group of answer choices 75% 40% 60% None of these 25%suppose that the local government of Columbus decides to institute a tax on seltzer consumers. Before the tax, 20,000 packs of seltzer were sold every week at a price of $10 per pack. After the tax, 15,000 packs of seltzer are sold every week; consumers pay $12 per pack (including the tax), and proceeds nrecieve $5 per pack.Consider the market for ice cream cones. Suppose that supply in this market is given by P^S = Q^S and demand is given by P^D = 30 - 4Q^D. Answer the following question. Compute consumer surplus, producer surplus, and government surplus in the market for ice cream cones with and without the $1.00 per ice cream cone tax. Compute the deadweight loss created by the tax.
- The demand and supply of some good are as follows: Qd = 100 - P Qs = 10 + 4P, (a) What is the equilibrium price and quantity? (b) Suppose the government imposes a tax of $5 per unit. Find: (i) the new equilibrium quantity (ii) the price a buyer will pay (iii) the price a seller will receive (iv) the deadweight loss (c) ALTERNATIVELY, suppose that the government grants a subsidy of $5 per unit. Find: (i) the new equilibrium quantity (ii) the price a buyer will pay (iii) the price a seller will receive (iv) the deadweight loss. Calculating tax incidence Suppose that the local government of Ogden decides to institute a tax on seltzer consumers. Before the tax, 20 billion packs of seltzer were sold every year at a price of $9 per pack. After the tax, 13 billion packs of seltzer are sold every year; consumers pay $12 per pack (including the tax), and producers receive $6 per pack. The amount of the tax on a pack of seltzer is $ burden that falls on producers is $ True per pack. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. False per pack. Of this amount, the burden that falls on consumers is $. per pack, and theWhich of the following types of goods and services should be taxed in order to discourage their production? Which of the following types of goods and services should be taxed in order to discourage their production? Goods and services with high inocme elasticities of demand Goods and services with negative externalities Goods and services with high price elasticities of demand Goods and services with positive externalities
