The inverse supply function for pizza is: pS = 1 + QS %3D The demand function for pizza is: pD = 19 - 200 %3D How many fewer pizzas are bought and sold with a $6 tax on consumption? Answer:
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- When due to change in price of a good, total expenditure on the good remains unchanged, then demand is:-Suppose the government imposes a $3 excise tax on the sale of sweaters in Alaska by charging suppliers $3 for each sweater sold. Using economic analysis, we would predict that: the price of sweaters will increase but by less than $3 consumers of sweaters will bear the entire amount of the tax the price of sweaters will decrease by $3 the price of sweaters will increase by $3 From the lecture video on elasticity, suppose a surfboard producer was considering lowering the price of surfboards in order to increase total revenues. Under what conditions would this idea work?) Always, because when producers lower price, consumption increases. This is the Law of Demand. When the elasticity of demand is inelastic. When the elasticity of demand is elastic. When the elasticity of demand is -0.58.The annual demand for imported oranges is given by the following equation:QD = 600,000 − 30,000Pwhere P is the price per kilogram and QD is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:QS = 20,000P Calculate the following: ii. the amount of revenues collected
- Compare the impact of a recession that reduces consumer income by 10 percent on theconsumption of technology goods and house rentals. Suppose that the income elasticity ofdemand for technology goods is 3 and the income elasticity of demand for house rentals is0.3. Based on your response, make a policy argument to support through governmentfunding either businesses or house rentals.The bar graph below shows the percentages of income spent on food (i.e., the portion of a consumer's budget devoted to food spending) and the elasticities of demand (in absolute value) for several countries' residents. [Click on the bar graph to open a PDF viewable version in another tab.] Malawians Haitians Bangladeshis Indians Brazilians Koreans. Greeks Italians Australians French Canadians Americans Percentage of Income spent on Food 17% 15% 14% 12% W 31% 28% 35% 40% X 56% Elasticity of Demad 66% 81% 75% According to the bar graph, which of the answer choices is correct? Malawians spend less money on food than Australians. French spend less money on food than Brazilians. Bangladeshis spend a larger percentage of their income on food than Americans. O Canadians spend a larger percentage of their income on food than KoreansCountry Z produces and consumes only two products: milk and bread. The price elasticity of demand ofbread is Ed = −0.1 = 0.1 and the price elasticity of demand of wheat is Ed = −2 = 2The government of country Z needs a significant amount of fund to tackle the current coronavirussituation. To obtain the fund, they have decided to impose a $ 5 tax on either the sellers of rice or thesellers of wheat. Currently, both the equilibrium prices of wheat and rice are $20 per unit respectively.The equilibrium quantities of wheat and rice are 10,000 units (per day) respectively.As the economic advisor of country Z, what would you advise the government of country Z. Whichproduct should they tax to obtain the fund to tackle the coronavirus situation? Discuss in detail using theModel of Demand and Supply (your answer should include two well labeled graphs).
- Suppose that the market demand for Turkey is given by: Q_(T)=2-8P_(T)+2P_(C)+0.0015I Where Q_(T) is annual quantity demanded of turkey in million pounds, P_(T) is the price of turkey per pound, P_(C) is price of chicken per pound, and I is the average household income in dollars per year. a. Find the annual quantity demanded of turkey if the price turkey is $2.00 per pound, price of chicken is $1.50 per pound and the annual household income is $30,000.Urgently need The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 - 9.5p + 16.2 pp + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, Pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45 ¢ per pound, Pp is 31 ¢ per pound, and Q is 1,275 thousand metric tons per year. Calculate the income elasticity of demand for coconut oil.32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. a O O O O O O O O O O O O O O O O O Refer to Figure 3.4 and identify the true statement. a. The original equilibrium quantity was 57. b. The demand for DVD rentals has decreased. O The below figure shows the demand and supply of DVD rentals in a city. S₁ and D₁ are the original supply and demand curves. The demand curve shifts from D₁ to D₂. c. The supply of DVD rentals has decreased. d. The new equilibrium price is $3. e. The new equilibrium quantity is 48. Icon Key Price per DVD rental ($) 5+ 4+ 3- 2.50 2+ 1 0 10 20 30 Figure 3.4 + Quantity (Number of DVD rentals) ST Di + 40 50 60 70 80 90 100 110 48 57 66
- A city’s hotel tax used to be 20%. Today it is 12%. Total hotel tax revenue today is greater at a 12% tax than hotel tax revenue used to be at the 20% rate. Use a tax incidence (or tax shifting) supply and demand diagram to show both higher total tax revenue at the 12% tax rate, and lower total tax revenue at the 20% tax rate. Draw Arthur Laffer’s curve to show both the tax percentage reduction, and the total tax revenue increase. Label both diagrams fully.l Fido ? 1:13 PM 100% AA ezto.mheducation.com Problem 3-5 (Algorithmic) The demand and supply for a particular commodity are given by the following two equations: Demand: P = 12 – 0.2Qd and Supply: P = 6 + 0.2Qs Where Qd and Qş are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibrium condition Q = Qd, determine equilibrium price and equilibrium quantity. Equilibrium price = $0 Equilibrium quantity = O units Graph the two equations to substantiate your answer. Instructions: 1. Use the line tools Qd and Qs to draw the demand and supply curves for P = 6 and 12. 2. Use the drop line tool E to identify the equilibrium quantity and price. 15 Tools 12 Qd 9 3 10 20 30 QuantityIf a 10% decrease in the price of one product thatyou buy causes an 8% increase in quantity demandedof that product, will another 10% decrease in the pricecause another 8% increase (no more and no less) inquantity demanded?