User Account

All Pages

Calculate the direct loss in economic surplus

Assignment Help Microeconomics
Reference no: EM13848286

Suppose the weekly demand for a certain good, in thousands of units, is given by the equation P = 8 - Q and the weekly supply of the good is given by the equation P = 2 +Q, where P is the price in dollars.

1. Calculate the total weekly economic surplus generated at the market equilibrium.

2. Suppose a per-unit tax of $2, to be collected from sellers, is imposed in this market. Calculate the direct loss in economic surplus experienced by participants in this market as a result of the tax.

3. How much government revenue will this tax generate each week? If the revenue is used to offset other taxes paid by participants in this market, what will be their net reduction in total economic surplus?

Reference no: EM13848286

Questions Cloud

Mature manufacturing firm-reduce the payout : Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $12.15, but management expects to reduce the payout by 6 percent per year indefinitely. If you require a return of 10 percent on this stock, what will you pay for a sha..
What was its total assets turnover ratio : Shark Corporation's target capital structure is 30% debt, 15% preferred, and 55% common equity. The interest rate on new debt is 7%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 40%. ..
Determine the value-at-risk : Determine the Value-at-Risk (VaR), denominated in Australian dollars, for the portfolios - Determine the Expected Tail Loss (ETL), denominated in Australian dollars.
What was most recent dividend per share paid on the stock : Mustaine Corporation stock currently sells for $79 per share. The market requires a return of 9.6 percent on the firm’s stock. If the company maintains a constant 2.8 percent growth rate in dividends, what was the most recent dividend per share paid ..
Calculate the direct loss in economic surplus : Calculate the total weekly economic surplus generated at the market equilibrium.
Explain currency hedging : Explain currency hedging and explain how your topic is used in global financing operations and describe its importance in managing risks.
Dividends are expected to grow rate : Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent and the company just paid a divi..
Assume the interest rate : Meghan has accepted a job offer from a large bank as the new CEO. Her base salary will be $200,000 one year from today and it expected to increase by 5% each year. She is also promised a one-time check of $150,000 today for joining the bank. If she w..

Reviews

Write a Review

Microeconomics Questions & Answers

  Supply and demand concepts

Supply and Demand Concepts

  Problem 1 use okuns law to answer the questions

problem 1. use okuns law to answer the questions belowutnbsp- ut-1nbsp -0.4gytnbsp- 3 assuming ut-1nbsp 7a. compute the

  Why do you believe they each would work what would costs of

sometimes market activities production buying and selling have unintended positive or negative effects outside the

  Important external environmental factor

Identifies and analyzes the most important external environmental factor in the remote, industry, and external operating environments

  How does banks finding relate to economists traditional

Recently, a bank was trying to decide what fee to charge for "expedited payments" - payments that the bank would transmit extra-speedily to enable customers to avoid late fees on cable TV bills, electric bills, and the like.

  Describe the factors which cause average income of

1.explain how welfare creates work disincentives.2.discuss the factors that cause the average income of nonwhites to be

  Explain how they benefit firms but not consumers

Discuss ways firms establish barriers to entry and explain how they benefit firms but not consumers. Give an example of a law or regulation that limits the ability of firms to establish barriers to entry and an example of a law or regulation that ..

  Discuss the impact of long-term economic growth

Discuss the impact of long-term economic growth

  Identify the primary text

Powerpoint Presentation of Research Paper: The Golden TorqueInstructions:The powerpoint should not be a slideshow of the research paper. The goal of your research presentation is to share with the class a distilled synthesis of your research outcomes..

  Healthcare factors behind cost curve

Healthcare Factors Behind Cost Curve and Supply Curve Shifts - Compare the healthcare-based factors in the issues

  What is the rothchild index

What will happen in the long-run if there is no change in the demand curve - What is the Rothchild index?

  Determine the annual holding costs

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd