Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 22, Problem 4P
Subpart (a):
To determine
The subsidy burden per person.
Subpart (b):
To determine
The Total money raised through lobbying.
Subpart (c):
To determine
The total money raised for continuing subsidy and the additional revenue that can be raised for subsidy.
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Suppose demand and supply are given by: (LO3, LO4)
Qx d = 14 − 1/2 Px and Qx s = 1/4Px − 1
a. Determine the equilibrium price and quantity. Show the equilibrium graphically.
B. Supposed a $ 12 excise tax is imposed on the good. Determine the new equilibrium price and quantity
C. How much tax revenue does the government earn with the $12 tax
(Last Word) The combined cost of Social Security and Medicare programs was what percent of U.S. GDP in 2008
(A) 7.6
(B) 12.4
(C) 17.2
(D) 2.9
Domestic Demand Function:
p= 80-4Q
Domestic Supply Function:
p= 20+2.5Q
There is an international trade price equal to $15 (pw=15). Although, TheGovernment institutes an import tariff of $9 per unit. Suppose that instead of an import tariff, the government wanted to put an import quota that would make the same change in Producer Surplus as the $9 tarrif
A) What is the size of this import Quota that makes this same change in Producer Surplus as the $9 Tariff? B) What is the Deadweight Loss under this Import Quota?
Chapter 22 Solutions
Economics (Irwin Economics)
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Similar questions
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