Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 8SQ
To determine
The impact of effluent tax on coal.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
An economically efficient level of smoking:
a.
means people would not smoke
b.
occurs at the market equilibrium
c.
would have to account for all costs but would be greater than zero
d.
would have to increase to provide more jobs for farmers and tobacco workers
Consider the supply of soybeans in South America and the demand for soybeans in China. Draw a graph in which you show the current market equilibrium price of soybeans and quantity of soybeans traded. Include the curve that shows the true social costs of soybean production. Show the socially optimal amount of soybeans traded. Show the price that should really be charged for soybeans to ensure that production moves to the socially optimal level. Ensure that you label your graph correctly (all curves, axes, prices and quantities labeled). Show the deadweight loss of soybean production. What intervention could be used to change the market price for soybeans to the level that would move the quantity of soybeans traded to the optimal level?
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Price
P
X
D
S
Q
Quantity per period
(Figure: Model of a Competitive Market) If there are
external costs, a tax imposed on sellers will:
Choose one answer.
a. decrease the equilibrium quantity.
b. have no effect on the equilibrium price.
c. decrease the equilibrium price.
d. increase the equilibrium quantity.
Chapter 14 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 14.2 - Prob. 1.1GECh. 14.2 - Prob. 1.2GECh. 14.2 - Prob. 1.3GECh. 14.2 - Prob. 2.1GECh. 14.2 - Prob. 2.2GECh. 14.2 - Prob. 2.3GECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQPCh. 14 - Prob. 4SQP
Ch. 14 - Prob. 5SQPCh. 14 - Prob. 6SQPCh. 14 - Prob. 7SQPCh. 14 - California once proposed legislation that would...Ch. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 11SQPCh. 14 - Prob. 12SQPCh. 14 - Prob. 13SQPCh. 14 - Prob. 14SQPCh. 14 - Prob. 15SQPCh. 14 - Prob. 16SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - Prob. 3SQCh. 14 - Prob. 4SQCh. 14 - The perfectly competitive profit-maximizing firm...Ch. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
Knowledge Booster
Similar questions
- Rising prices for a natural resource stimulatea. the development of complements for the resource.b. the development of substitutes for the resource.c. the development of externalities from the resource.d. All of the above are correct.arrow_forwardFree markets___ 0. always fail to produce the optimal quantity and/or price0. can fail to provide the optimal quantity and/or price.0. never fail to produce the optimal quantity and/or price.0. always lead to the socially optimal outcome.arrow_forwardMatch the nonprice determinants of supply and demand. (Click the appropriate box) Determinant Technology Preferences Market Size Input costs Related Goods Supply Demandarrow_forward
- Let the supply and demand for widgets be given by the following schedule. Price: 3, 4, 5, 6, 7, 8, 9, 10, 11 Quantity Supplied: 100, 200, 300, 400, 500, 600, 700, 800, 900 Quantity Demanded: 900, 800, 700, 600, 500, 400, 300, 200, 100 a. What quantity will be produced here? b. What quantity is efficient if there are no external costs or benefits? c. What quantity is efficient if there is an external cost of $6 per unit from pollution caused by the widget factories?arrow_forwardPrice (P) S $4.00 $2.50 D $0.50 200 Quantity (Q) The market shown in the figure above is in equilibrium at the socially optimal quantity of 200 units. The Demand curve captures all social benefits to consumers, and the Supply curve captures all social costs to producers. In this case, Consumer Surplus will be: Select one: a. $100 b. $300 C. $200 d. $150arrow_forwardShow graphically and explain how an increase in environmental awareness affects the market for bottled water.arrow_forward
- If a negative supply-side externality (also called a negative externality in production) occurs, then: a. The market provides the efficient allocation. b. The market under-provides the product, meaning the market allocation is less than the efficient allocation. c. The market does not provided the product, hence market failure occurs. d. The market over-provides the product, meaning the market allocation is more than the efficient allocation.arrow_forwardThis summer, the temperature records on each other's feet seem to be beaten. In Sweden, the temperature has recently risen to 43 degrees and birds are falling from the sky over exhausted and dying. Carbon emissions are one of the main challenges facing mankind today. Explain the market failure caused by the emissions. Under competitive conditions, the government can use various control tools to establish efficient quantities, e.g. with a fee. Show the effect of such a solution on a diagram and explain in detail why an economical amount involves some pollution. In a monopoly situation, it is not as simple as establishing efficiency by charging emissions. Explain in words and pictures how the different interplay between the cost factors of a company and pollution costs can cause certain government tariffs on pollution to be cost-effective on the one hand and inefficient on the other.arrow_forwardAn externality occurs in a market when Oa third party is impacted by a market activity Oexternal factors cause a market's price to rise Othe government regulates a market Onatural disasters negatively impact a marketarrow_forward
- Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers. (a) Draw a correctly labeled graph of the soybean market, and show each of the following. (i) The marginal private cost, labeled MPC (ii) The marginal social cost, labeled MSC (iii) The marginal social benefit, labeled MSB (iv) The market equilibrium quantity, labeled QC (v) The socially optimal quantity, labeled QS (vi) The area of the deadweight loss, shaded completely (b) Assume the government sets a binding price floor such that the quantity demanded in the market is between QS and QC. (i) What will happen to the quantity produced? (ii) Will the price floor reduce the deadweight loss? Explain. (c) Assume instead of a price floor, the government decides to impose a lump-sum tax. What will happen to the socially optimal quantity? Explain. (d) Assume instead of a lump-sum tax, the government…arrow_forwardWhat is an external benefit? An external benefit is a benefit that OA. always equals external cost OB. experiences increasing marginal returns C. affects someone other than the buyer of a good OD. is greatest at the equilibrium pointarrow_forwardThe government in your country is considering three programs that affect the market of cigarettes. Program 1: media campaigns and labeling requirements aimed at making the public aware 0f the dangers of cigarette smoking. program 2: A price-support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the government is to support farmers while reducing the consumption of cigarettes. What program or combination of programs should be implemented? Choose 1 Program 3 Program 1 Program 1 and 3 Program 2 Reduce quantity of cigarettes consumed and reduce price of tobacco All three programs Reduce quantity of cigarettes consumed and reduce price of cigarettes Reduce quantity of cigarettes consumed and increase price for tobacco Program 1 and Program 2 Reduce quantity of cigarettes consumed and increase price for cigarettesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning