Suppose that the government has decided to place a $2 per litre tax on soft drinks. In this market, assuming that demand and supply curve have roughly the same responsiveness at their point of intersection, how is the incidence of the tax burden split between consumers and producers? Assuming next that the demand curve is less elastic. How does the tax incidence change?

Q: Consider the market for new economics textbooks. The following graph shows the demand curve for new…

A: At the price of $100, we could Clearly se that it is the point where the quantity demanded will be…

Q: Revenue increases from 10 to 12 and the income elasticity of demand is - 0.5. The quantity demanded…

A: Elasticity is used by firms to determine the prices of their products and to increase/ decrease…

Q: Suppose that a 5 percent bond with a face value of $1,000 is currently selling at a discount for…

A: Given Bond face value = 1000 $ Coupon rate = 5 % or 50 $ Current value = 800 $

Q: Bold Vision, Inc. must purchase toner from a local supplier. The demand rate is 620 EP cartridges…

A:

Q: Kroger, the country's leading grocery-only chain, added a line of private latbel organic and natural…

A: *Answer:  To begin, consider how profit margin is computed as a percentage. The price at which a…

Q: a. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts…

A: Value-added selling is the particular selling process during which the sales rep does whatever it…

Q: How long (in years) will it take to quadruple it earns 0.08 compounded semiannually?

A: Given interest rate = 8 % compounded semiannually Semi annual rate = 8 / 2 = 4 % The rule of 144 The…

Q: f you opened an account on Year 0 with the amount shown and you deposit and withdraw the following…

A:

Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) n the above diagram, marginal cost…

A: The "law of variable proportions" causes the above marginal cost curve to be U-shaped in the short…

Q: Suppose the required reserve ratio is 11%, currency in circulation is $285 billion, the amoun of…

A: Given reserve ratio = 11 % Currency in circulation = 285 Billion $ Checkable deposits = 600 Billion…

Q: If the income elasticity of demand for some good is 4, then a 10% increase in price will lead to a:…

A: In a market, it can be said that the market price and real income has inverse relationship, such…

Q: A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the…

A: Marginal cost is constant at $1000 per diamond. In a perfectly competitive market, price becomes…

Q: Suppose that the utility function of an individual is given by U=Y/2L2, where Y is real income and…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: what are the advantages of automation in a mixed economy?

A: The set of tools that are being designed in order to perform tasks that are known to be repetitive…

Q: INFINITE REPETITION Consider the infinitely repeated game constructed from the following stage game.…

A: Payoffs of the infinitely repeated game are as follows -

Q: In the short-run, a tax increase Select an answer and submit. For keyboard navigation, use the…

A: Whren the government follows contractionary fiscal policy, the higher tax will result in income to…

Q: Consider an economy divided into an agricultural sector (A) and an indus- trial sector (I). To…

A: In this question we have:- To produce 1 unit of agricultural sector (A), it requires:- 14unit from A…

Q: Exercise 7.3 An insurer issues a whole life insurance with sum insured $500 000, with premiums…

A: Net premium is defined as the insurance premium that includes he amount that is needed for the…

Q: What are the problems faced by the avg production system in a developing country and what methods…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Given the function X=(4K)^1/3(L)^2/3 where both capital K and labor Lare functions of z. Solve dX/dz…

A: Product rule is used when we have to find the derivative of a function which is multiplication of…

Q: $30 MC LATC $20 $10 MR Demand 10 20 30 40 Quantity (in Thousands per Month) What is the maximum…

A: Here, the given graph shows the cost and demand curves of a monopoly firm.

Q: Nittany Knitting makes athletic jerseys in Happy Valley, PA. There are two kinds of workers in the…

A: We are going to use Opportunity concept to answer this question.

Q: I need help with question 2. You guys have already answered number 1.  Externalities and Tax…

A: Answer 2. An externality is a cost or benefit incurred or received by a producer that is not paid…

Q: Discuss the restrictions nations place on international trade, the objectives of these restrictions,…

A: International trade refers to the exchange of products and services between countries. Global trade…

Q: Which of the following best describes how Parliament felt about the colonists? a. Colonists must pay…

A: The English believed that colonists should pay taxes since the English government-provided services…

Q: 1. Consider the Competitive banking model of Freixas and Rochet Section 3.1. where Banks' profit…

A: Cost Function refers to the relationship between the various inputs and how they constitute with…

Q: Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to…

A: Here, the information about the income and the components of AD, such as consumption, government…

Q: Assume a Cobb-Douglas production function of the form: q = 10L0 58 K0.79 What type of returns to…

A: Increasing returns to scales  are present when increasing all factors of production by t leads to…

Q: Suppose that a U.S 1-year bond has a yield of 1.520% while one from China has a yield of 2.165%.…

A: Inflation refers to the rise in the general price levels of goods and services within a country over…

Q: The price of a daffodil is $0.97. When average income is $52,000 demand for daffodils is given by P…

A: Income elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: (a) Explain the difference between government spending and the government Purchases of goods and…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: I.The firm is in the correct position. 2. The firm should increase price. 3.The firm should decrease…

A: IN any perfect competition, the maximum profit is achieved at the point where, Marginal revenue =…

Q: The supply curve of some good is vertical. What will be the effects of a fall in demand for it?…

A: Supply curve represent the positive relationship between the existing price of a commodity and it's…

Q: Discuss the discipline of economics from the end of the 19th century to the present from an ethical…

A: An economic system is a way for governments or communities to distribute and organise resources,…

Q: 7. after a lengthy meeting with the marketing team about a new product being introduced, your boss…

A: We are going to use present value approach to answer this question.

Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x1a2 – 2x – 23/2, when the weekly…

A: Answer is given below

Q: Provide the difference between Legal Regulatory Requirements and Policy. Give an example

A: A regulatory requirement may be a rule imposed on an organisation by a government authority. most…

Q: In 2018, India was the world’s seventh largest economy, with a $2.69 trillion GDP (as measured in…

A: GDP is the indicator utilized across the globe to demonstrate the wellbeing of a country's economy:…

Q: Two firms compete by choosing price. Their demand functions are: Q1 = 20 -P1 +P2 and Q2 = 20 - P1 +…

A:

Q: Consider a Common Value auction with two bidders who both receive a signal X that is uniformly…

A: Nash equilibrium refers to the strategy of dominant strategy which matches both player 1 and player…

Q: Expenses that do not require a monetary outlay but instead reflect the dollar value of benefits…

A: Accounting cost:-  Any action's accounting cost can be explained as the expense that is…

Q: . What other policy alternatives, generally, are available to address the externality?

A: A cost or benefit incurred or received by a producer that is not paid for by that producer is known…

Q: C3. Monopolistic Competition i. Discuss the main characteristics of the monopolistically competitive…

A: 1) It's a market where only one company sells a specific product or service.

Q: For any given price, a firm in a competitive market will maximize profit by selecting the level of…

A: In competitive market, there are large number of firms selling identical goods.

Q: 750 permits b. How many pollutants should be cleaned up every year? 250 units c. Assume that there…

A: A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or…

Q: Question 18 The upward sloping portion of a long-run cost curve illustrates: Diminishing marginal…

A:

Q: Consider a competitive labor market. Using the model of how income is determined in a labor market,…

A: n the competitive market, the equilibrium level of income and number of laborers is determined when…

Q: 44)How does the average-fixed-cost curve behave?  A. It declines as long as it is above marginal…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 100 Rico has the demand curve for tacos T = where p is the price of tacos and T is the quantity.…

A: