1 the demand and supply equations in a market are given as

Assignment Help Microeconomics

Reference no: EM13372619

1) The demand and supply equations in a market are given as Q = 30 - 2P and Q = 10 + 2P. If the government imposes a tax of $0.50/unit on the suppliers, what would be the net loss in consumer surplus and producer surplus? What would be the deadweight loss? Also compute consumer's tax burden and consumer's new expenditure.

2) a.Give an example of positive externality. Using a graph explain how the usual framework of marginal private benefit and marginal private cost leads to underproduction (less than optimal production) in this case.

b. Give an example of negative externality. Using a graph explain how the usual framework of marginal private benefit and marginal private cost leads to overproduction (more than optimal production) in this case.

Reference no: EM13372619

Questions Cloud

An enzyme lab you will do later this term measures : an enzyme lab you will do later this term measures production of yellow colored nitrophenol over time. what range of

Write a paper in which you1 explain the concept of : write a paper in which you1. explain the concept of comparative advantage and the principle theories of why trade

Demonstrate graphically the cost of income taxation of 30 : demonstrate graphically the cost of income taxation of 30 to consumers and producers for an income of 27908?how does

Formulate a hypothetical problem and analyze or show how : formulate a hypothetical problem and analyze or show how you would solve the five economic tools from your textbook. be

1 the demand and supply equations in a market are given as : 1 the demand and supply equations in a market are given as q 30 - 2p and q 10 2p. if the government imposes a tax of

Discuss the supply and demand as well as elasticity : discuss the supply and demand as well as elasticity concepts of the panera bread company. incorporate these concepts

You a real-estate developer own a piece of land in nassau : you a real-estate developer own a piece of land in nassau bahamas next to an equal size piece of land owned by a

In horses black is dependent upon a dominant gene b and : in horses black is dependent upon a dominant gene b and chestnut upon its recessive allele b. the trotting gait is due

1 clipit is a paper clip manufacturer the company enjoys a : 1. clipit is a paper clip manufacturer. the company enjoys a patented technology that allows it to produce paper clips

User Account

All Pages