Pearson eText Macroeconomics -- Access Card
7th Edition
ISBN: 9780136850014
Author: Hubbard, Glenn, O'Brien, Anthony
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.4.8PA
To determine
The impact of tax on pizza.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Comment on another student's post by suggesting a demand or supply shifter different from the one(s) they suggested that would have the same impact on demand or supply. For example, if a student wrote their post about how demand for the good they are writing about would rise due to a change in one demand shifter, you would respond by explaining how the demand for that good would rise due to a change in a different demand shifter.
"A carpet cleaning service has just opened and is increasingly becoming popular, many people have experienced their carpets becoming dirty as the spring season rolls in with heavy rain. Since there has been heavy rain the people in this town have been tracking mud all over their carpets ruining the color and staining it, many people have turn to this carpet cleaner to help remove stains and excess mud out of the carpet. This would cause the demand of the service to shift to the right, increasing the price and moving the equilibrium to the right. The price…
In 2020 the UK government introduced a sales tax on all products bought online from overseas. Please note this is not a tariff – it is a tax. The tax will be 2% of the value of the products sold in the UK. This tax is collected from online sellers such as Amazon or ebay. Source: BBC (2019). See link: https://www.bbc.com/news/business-50656106
Consider the market for online products. The initial market equilibrium is at 10 million products sold per year at an average price of $500 each. Then, the UK government imposes a tax on the market, collected from sellers (for example Amazon and ebay). The tax is 2% per item (each item has an average price of $500).
Show the effect of this on the market for online products. Show the effect on consumers of online products, on the online sellers and on the government. Does the UK economy gain or lose as a result of the tax? Explain why. Use a diagram to support your answer.
Q.4.1 Read the excerpt in the textbox and use the information to answer the question
below:
http://clipart-library.com/citrus-cliparts.html
Adapted from the Farmer's Weekly. Written by Siyanda Sishuba
A strong increase in global demand for citrus has so far been
evident in the 2020 export season, according to Justin Chadwick,
CEO of the Citrus Growers' Association of Southern Africa.
In a statement, Chadwick said increased global demand for lemons
had resulted in 4,5 million 15kg-equivalent cartons being shipped to
date. This was double the 1,8 million cartons exported during the
same period in 2019.
https://www.farmersweekly.co.za/agri-news/south-africa/strong-demand-for-sa-
citrus-at-start-of-2020-export-season/[Accessed 19 March 2021].
With reference to the excerpt above, and assuming that the majority of the
sales of citrus are going to Europe, explain the impact this increase in the
demand for citrus fruit will have on the rand/euro exchange rate and the value
of the rand.
Use a…
Chapter 4 Solutions
Pearson eText Macroeconomics -- Access Card
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Why would economists use the term deadweight loss...Ch. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - What is economic efficiency? Why do economists...Ch. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - Prob. 4.4.4RQCh. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Similar questions
- Suppose that there are two companies that produce mobile phones: Brand A and Brand B. Explain how each of the following events will affect the market for Brand A phones by using supply and demand diagrams (mention the changes in equilibrium price and quantity): a) Price of Brand B phones increased. b) Brand A's factory's production capacity dropped because of a shortage in raw materials supplies. c) Brand A has developed a new technology that allows to assemble the phone's components in a cheaper way.arrow_forwardWhat is a competitive market? Briefly describe the types of markets other than perfectly competitive markets.arrow_forwardI recently stumbled upon the following quote in a newspaper: "Increased production (i.e. an increase in supply) leads to a lower price; which in turn, increases demand." Do you agree with such reasoning? Briefly explain.arrow_forward
- Explain briefly what is a supply curve.arrow_forwardIn 2016, Walmart closed 150 stores in the United States and deeply discounted the merchandise in them. Some people bought the merchandise at these low prices and resold it on Amazon, eBay, and other sites. An article in the Wall Street Journal described one reseller who: "sent three employees in a 26-foot truck to the nearest closing Walmart, about 160 miles south. They hauled off $35,000 in merchandise, like Legos and Star Wars pajamas, which he said he expects to sell for as much as $100,000 on Amazon." Source: Greg Bensinger, "Wal-Mart Closures Bring Out the Amazon Sellers," Wall Street Joumal, January 29, 2016. Is the reseller making a $65,000 profit on these goods? Briefly explain. OA. Yes, the seller is making a $65,000 profit because his revenue is $ 100,000 and his cost is $35,000. B. No, the seller is making less than $65,000 because he incurs transactions costs. c. Yes, the seller is actually earning a $100,000 profit because the $35,000 is a sunk cost. D. No, the seller is…arrow_forwardIn 50 words, answer the following question: We know that a linear supply curve starting from the origin represent the constant price elasticity of supply. (You can examine it with some numerical examples.) Why don't we find any linear demand curves representing constant price elasticity of demand?arrow_forward
- The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. 200 180 160 140 B 120+ A 100 80 40 K 20 20 40 60 80 100 120 140 160 180 200 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and D, curve JJ is elastic. Between points A and E, curve HH is unit elastic. Curve JJ is more elastic between points A and D than curve KK is between points A and C. PRICE (Dolars per unit) O ooarrow_forwardUse the following table to answer the following three questions. Demand: Quantity 1 2 3 4 5 6 7 8 9 10 Price 10 9 8 7 6 5 4 3 2 1 Marginal Revenue 10 8 6 4 2 0 -2 -4 -6 -8 Costs: Marginal Cost 9 6 5 3 2 3 4 5 7 10 Average Cost 9 7.5 6.7 5.8 5 4.7 4.6 4.6 4.9 5.4 If the transit system was allowed to operate as an unregulated monopoly, what output would it supply and what price would it change? If the transit system was regulated to operate with no subsidy ( i.e., at zero economic profit ), what approximate output would it supply and what approximate price would it charge? If the transit system was regulated to provide the most allocatively efficient quantity of output. what output would it supply and what price would it…arrow_forwardI mostly need help with the total revenue calculations at the bottom of the screenshot. If you could also briefly go over the fill in the blank questions too that could be great. I want to understand how those answers are used in the calculation of the total revenue values. Thanks!arrow_forward
- Use a supply and demand graph to show the impact of the following on the equilibrium price and quantity in the market for Texas Instrument calculators. [You will upload your graphs at the end.] Casio calculators announces higher prices for consumers and at the same time Texas Instrument negotiates a much lower monthly rent on their lease.arrow_forwardCopy of The following graph displays four supply curves (HH, II, JJ, KK) that intersect at point A. PRICE (Dollars per unit) 400 360 320 280 240 200 160 120 80 40 0 H 0 40 80 A SE H + 120 160 200 240 280 320 360 400 QUANTITY (Units) Using the graph, choose the statements that are true: Between points A and C, curve KK is inelastic. Between points A and B, curve II is perfectly inelastic. Curve KK is more elastic between points A and C than curve JJ is between points A and D. Between points A and E, curve HH is perfectly inelastic.arrow_forwardD. Prouucer surpiuS Tor a group o sellers The following graph shows the supply curve for a group of sellers in the U.S. market for laptops (orange line). Each seller has only one laptop to sell. The market price of a laptop is shown by the black horizontal line at $90. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a laptop at a market price of $90. (Note: If a person will not sell a laptop at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 160 140 Andrew 120 Jacques Eleanor 100 Beth Market Price 80 Darnell Darnell 60 40 Beth…arrow_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