Calculate the tax revenue generated and also the deadweight

Assignment Help Econometrics
Reference no: EM131072511

Consider a market where supply and demand are given by P = 10 and P = 34 - Q respectively.

(a) Illustrate the market geometrically, and compute the equilibrium quantity.

(b) Impose a tax of $2 per unit on the good so that the supply curve is now P = 12. Calculate the new equilibrium quantity, and illustrate it in your diagram.

(c) Calculate the tax revenue generated, and also the deadweight loss.

Reference no: EM131072511

Questions Cloud

How might two different theoriest explain john or sam : How might two different theoriest explain John or Sam? What would they say about personality? Development? etc, There are 5 other concepts (at minimum) that could be discussed form this essay.
Develop a process model of the following small job shop : Develop a process model of the following small job shop. The shop processes two types of jobs in equal numbers. The time between job arrival is exponentially distributed with a mean of 3 hours.
How many driveways will be shoveled in equilibrium : How many driveways will be shoveled in equilibrium?
Critical reflections from business perspectives : GB500 How have your learning experiences and the major knowledge and skills you have developed during this subject affected you - What impact have these had on your current job and your attitude to work?
Calculate the tax revenue generated and also the deadweight : Calculate the tax revenue generated, and also the deadweight loss.
Is this new demand curve more or less elastic : Is this new demand curve more or less elastic than the original at the equilibrium?
Create a six-panel brochure that covers the apa guidelines : Create a 6-panel brochure that covers the APA guidelines and expectations for your course according to your reading and the current version of the APA manual.
Discuss the key considerations in the area you chose : Discuss the key considerations in the area you chose (risk analysis, new ventures or stakeholder management) when formulating a strategy for an energycompany.
Management wishes to move the job shop : Management wishes to move the job shop toward a lean system in which there would be three workcells, one for each job type. Due to current budget constraints, no more machines than were found necessary in the case study above can be used, a total ..

Reviews

Write a Review

Econometrics Questions & Answers

  Determine what is minimum salvage value

A new chemical remediation tank is needed. Current technology tanks, which costs $150,000, MUST BE DRAINED AND TREATED EVERY TWO YEARS AT A COST OF $30,000; THE TANKS WILL LAST TEN YEARS, AND EACH WILL HAVE A SALVAGE VALUE OF 5%. OF FIRST COST.

  Explain what is the standard error of the mean

CRA CDs Inc. wants the mean lengths of the "cuts" on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute segment. What is the standard error of the mean

  Derive the function for the marginal product of l

Derive the expression for the marginal rate of technical substitution for thisproduction function.(f ) If α = 0.3, the price of capital is $10 per unit and price of labor is $15 perunit, what is the cost-minimizing ratio of capital to labor.

  Compute the marginal revenue of each unit of output

Assume that the short run cost and demand data given in the table below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of o..

  A producer produces good y using a single input x according

a producer produces good y using a single input x according to the production function yxa where 0ltalt1. the producer

  Find the mixed-strategy nash equilibrium of the new game

demonstrate a seeming peculiarity about mixed strategy Nash equilibria. Consider the following game between the Chicago Bears' oense and the Detroit Lions' defense. Payos are the number of yards advanced (positive yards for Chicago are negative ya..

  The monopolist can price discriminate

The monopolist can price discriminate?

  Determine the mean-median and mode for the data set

She is considering offering her customers a discount on shipping charges based on the dollar-amount of the mail order. Before Missy decides the discount policy, she needs a better understanding of the dollar-amount distribution of the mail orders ..

  Determine the sample size for the estimate of the population

determine the sample size for the estimate of the population

  Illstrate the shape of a typical indifference curve

a consumer has preferences between two goods, hamburgers(H),and milkshakes(m), his perference over the two goods are represented by the utility function U= H^1/2+M^1/2, for this utility function MUH=1/(2H^1/2) and MUM=1/(2M^1/2)

  How much willing to pay for a 16-ounce bottle of water

When it is 105 degrees outside and you get thirsty, how much you willing to pay for a 16-ounce bottle of water. If the price is $1.50 per bottle, do you have a consumer surplus or is there a producer surplus or both

  Solve for the monopolists prot-maximizing price

where Q is quantity, p is the price, and A is its level of advertising. Its marginal cost of production is constant at $10, and its cost of a unit of advertising is $1.

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!

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