Foundations of Economics, Student Value Edition (8th Edition)
Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 7, Problem 8IAPA
To determine

To explain:

The consumer surplus, producer surplus and dead weight loss with the help of a graph for Canadian market of milk.

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Suppose Market for hotel rooms is at equilibrium. Determine the effects of a $120 price floor on quantity demanded, quantity supplied and quantity exchanged in the market. Show the effects on the graph. Show the deadweight loss of the price floor on your graph
problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in the city such as taking the train or parking just outside the city and taking a bus.   a. Please draw the market for parking spaces in downtown LA.     b. If a tax is applied on parking spaces, what happens to the quantity?   c. Who pays most of the tax burden?   problem 2  Suppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as increasing the parking requirements and setback requirements. Suppose there is a housing tax.   a. What is the effect of this law on the PES for housing?   b. What effect would this law have on the tax burden for buyers?
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