Compare the tax incidence in the short run to the long run

Assignment Help Business Economics
Reference no: EM131239048

Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the long run.

Reference no: EM131239048

Questions Cloud

Briefly summarizes the given article : Briefly summarizes the article - Identifies the author's claims and provides evidence of the strength or validity of the author's claims.
The advertising campaign makes foreigners demand : What would be the e¤ect of an advertising campaign to promote W in the ROW? ( Assume that the advertising campaign makes foreigners demand more W relative to F at any relative price.) What would shift? What would happen to relative prices in the worl..
Employee posted unflattered comments : How would you react if you learned one of your employee posted unflattered comments about you as manager? would you reaction be anything different if the employee posted unflattered comments about you as a person?
Compute 95% confidence intervals for each odds ratio : Obtain model-averaged estimates of the odds ratios corresponding to the effect of each explanatory variable. Interpret these values.
Compare the tax incidence in the short run to the long run : Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the..
Probability of tripling her investment : An investor is considering two alternatives for which she has Rs. 1,00,000 to invest. The first is commercial property; the second is stocks. Analysis has revealed that the property alternative offers a 0.50 probability of tripling her investment ..
Under perfect competition firms take prices : Under perfect competition firms take prices as given. In that case, and under constant returns to scale, firms make 0 profits in equilibrium. Show that this is true for the Cobb Douglas production function, when firms rent capital from households at ..
Maintain the same systems and policies everywhere : Wal-Mart operated stores in both the US and Mexico. While Wal-Mart would like to maintain the same systems and policies everywhere they operate, culture creates some differences.
Increase in income on total health expenditures : If the price elasticity of demand is -0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculat..

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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