Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 4, Problem 4IP
(a)
To determine
Demonstration of the number of awards using the demand and supply curve.
(b)
To determine
The number of pre-trial settlements.
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Students have asked these similar questions
Which one is CORRECT about the effects of tax on welfare as compared to without tax?
A.
Consumer surplus will rise
B.
Producer surplus will rise
C.
Tax revenue will rise
D.
Total surplus will rise
E.
All of the above
The effect of tax on deadweight loss becomes smaller when:
A.
demand is inelastic
B.
demand is elastic
C.
supply is inelastic
D.
supply is elastic
E.
A and C
F.
B and D
Which one is CORRECT about the marginal and average costs?
A.
Marginal cost crosses both average variable cost and average total cost at their minimum points.
B.
Average fixed cost increases continuously as the level of output increases.
C.
Whenever marginal cost is greater than average total cost, average total cost is rising.
D.
All of the above
Which of the following is an example of implicit costs?
A.
payments made by the firm to others
B.
opportunity cost of resources owned…
．How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.
FUTA is a federal tax that is paid by employers for each employee to provide _____ compensation to workers who have lost their jobs.
a. Medicare
b. unemployment
c. self employment
d. social security
Chapter 4 Solutions
Microeconomics
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
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Similar questions
- If Rochelle earns an annual salary of $100,000 and David earns $75,000 annually and a tax is imposed onRochelle and David, according to the ability-to-pay principle,Rochelle and David should pay the same amount in taxes. Rochelle should pay more of the tax. neither should have to pay the tax. David should pay more of the tax.arrow_forwardWhen demand is elastic Draw a diagram and explain how consumer burden is determined how producer burden is determined who pays the bigger burden of the tax how tax affects the efficiency of the market clearly explain and show the government tax revenue clearly explain and show the deadweight lossarrow_forwardQuestion 22 If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon: a a market with highly elastic demand and highly elastic supply. b a market with highly inelastic demand and highly inelastic supply. c a market with highly elastic demand and unit elastic supply. d a market with unit elastic demand and unit elastic supply.arrow_forward
- The deadweight loss due to the imposition of an excise tax is lowest when Group of answer choices 1. demand is relatively inelastic and supply is relatively elastic. 2. demand is relatively inelastic and supply is relatively inelastic. 3. demand is relatively elastic and supply is relatively elastic. 4. demand is relatively elastic and supply is relatively inelastic.arrow_forwardDoes the Constitution create the power for the State to tax? Justify.arrow_forwardSuppose the supply curve for cars is more elastic than the demand curve for cars. If the government imposes a tax on car sellers, which party (buyers or sellers) will bear more of the tax burden? How will the tax burden change if the government imposed the tax on car buyers, rather than sellers?arrow_forward
- True, False or Depends. Please develop your answers 1. "Who pays the costs of a tax will depend mainly on the will of the legislators, as they decide whether to tax the suppliers or the demanders of the good". 2. "The sunk efficiency loss generated by a tax is higher with relatively elastic supply and relatively inelastic demand compared to the reverse situation (relatively inelastic supply and relatively elastic demand)".arrow_forwardHow do the relative elasticities of supply and demand determine tax or subsidy incidence?arrow_forwardAfter economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic. In what sense is taxing food a “good” way to raise revenue? In what sense is it not a “good” way to raise revenue?arrow_forward
- Discuss the impact the Marketplace Fairness Act will have on small retailers in the US. Is it fair that small retailers should have to collect sales taxes on online sales to customers outside of their state?arrow_forwardThe previous question was: The New York City announces they will be placing a three dollar tax on all drums purchases in New York City. Find the new market equilibrium, surplus, government revenue, and the deadweight loss of the tax (if any). Submit your work. Note: I have already submitted the question above. What does your answer to question 3 suggest about the impact of the tax on welfare in New York City? A recent study shows that each drum owner in a major city like New York City causes about 3 dollars in damages to their neighbors' ears from lost sleep and noise pollution. Does that change your answer above? Why?arrow_forwardIf the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax incidence. Question 43 options: a) the local government b) the producer c) the consumer d) the federal governmentarrow_forward
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