ECON.TODAY (COMPLETE)-TEXT ONLY
18th Edition
ISBN: 9780133882285
Author: Miller
Publisher: PEARSON
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Question
Chapter 3, Problem 2FCT
To determine
To write:
Whether the supply curves of the transportation services have experienced a rightward shift or movement along those curves in the short run.
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The supply of Pespi is given by the following equation: Q p S = −24 + 6Pp + Pc + 2Pw where Q p S is the quantity of Pespi supplied, in millions of litres, Pp is the price of Pespi per litre, Pc is the price of Coek per litre; and Pw is the price of the water used to make the products per litre.
(c) What will happen to the supply of Pespi if the price of Coek increases to $6 per litre? Graph the new inverse supply carefully and indicate the new choke price.
(d) Suppose instead that the price of Coek remains $4, but the price of water decreases to $1. What will happen to the supply of Pespi as a result?
Demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item)
Demand = 198 - 2v
Supply = -2 + 2v
The world market price for TV use is € 30. Price per item.
a) decision is now made to impose a 30% duty on the world market price of imports (foreign streaming services), but the government has now found that traditional duty can be collected through credit card companies transactions (no VAT).
i) What will be the price, imports, demand and domestic supply.
ii) What will be the macroeconomic loss due to duty compared to free trade without VAT?
Demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item)
Demand = 198 - 2v
Supply = -2 + 2v
The world market price for TV use is € 30. Price per item.
c) decision is now made to impose a 30% duty on the world market price of imports (foreign streaming services), but the government has now found that traditional duty can be collected through credit card companies transactions (no VAT).
i) What will be the price, imports, demand and domestic supply.
ii) What will be the macroeconomic loss due to duty compared to free trade without VAT?
Chapter 3 Solutions
ECON.TODAY (COMPLETE)-TEXT ONLY
Ch. 3 - Prob. 3.1LOCh. 3 - Prob. 3.2LOCh. 3 - Explain the law of supplyCh. 3 - Prob. 3.4LOCh. 3 - Prob. 3.5LOCh. 3 - Prob. aFCTCh. 3 - Prob. bFCTCh. 3 - Prob. cFCTCh. 3 - Prob. dFCTCh. 3 - Prob. eFCT
Ch. 3 - Prob. fFCTCh. 3 - Prob. gFCTCh. 3 - Prob. hFCTCh. 3 - Prob. 1CTQCh. 3 - Prob. 2CTQCh. 3 - Prob. 1FCTCh. 3 - Prob. 2FCTCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13P
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