>>The graph shows the market for peanuts.The government introduces a production quota of 2 billion pounds a year.(...)from the production quota.from the production quota.OA. Farmers and consumers lose; No one gainsOB. Consumers lose; Farmers gainOC. No one loses; Farmers and consumers gainOD. Farmers lose; Consumers gainThe deadweight loss created by the government's price support is $ billion.12.0010.00-8.00-6.00-4.00-2.000.00+0Price (dollars per pound)SQuantity (billions of pounds per year)D10QRONextmpts

The demand curve depicts the quantity demanded at each price level, keeping other factors of demand…

Answered: The government introduces a productic…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 6PA

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Suppose 1000units of product A are produced by XYZ limited but the quantity demanded for the product is 2000units. All other things remaining constant,a $18 change in price of product A results in a change in quantity demanded and supplied of 6 and 9 respectively.XYZ has a work force of 500 people who pay an income tax of $200 each to the government. 1.Calculate the new equilibrium price and quantity,suppose the government introduces a subsidy of $10 on each unit of product A.
Which of the following taxes do you think would cause the larger deadweight loss? Why?(a) a poll tax or a sales tax;(b) a sales tax on both services and goods or a sales tax only on goods;(c) an income tax only on interest and dividends or an income tax on income from all sources;(d) a tax on soft drinks or a tax on all beverages
a subsidy is the opposite of a tax. with a $500 tax on the buyers of laptops, the government collects $500 for each laptop purchased, with a $500 subsidy for the buyers of laptops, the government pays buyers $500 for each laptop purchased. a) show the effect of a $500 per laptop subsidy on the demand curve for laptops, the effective price paid by consumers, the effective price received by sellers, and the quantity of laptops sold. b) do consumers gain or lose from this policy ? do producers gain or lose? does the government gain or lose ?

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The government introduces a productic || from the production quota. from the production quota. OA. Farmers and consumers lose; OB. Consumers lose; Farmers gair OC. No one loses; Farmers and co OD. Farmers lose; Consumers gain The deadweight loss created by the g