Compare with the pre-tax equilibrium

Assignment Help Business Economics
Reference no: EM132015017

The demand curve in competitive market is given by P = 60 - 4Qd, where P is price and Qd is the quantity demanded. The supply curve is P = 6Qs, where Qs is the quantity supplied. The government imposes a $20 per-unit tax to be legally paid by consumers. Compared with the pre-tax equilibrium:

(a) Consumers pay an extra $20 per unit, Suppliers receive the same amount per unit.

(b) Consumers pay an extra $12 per unit, Suppliers receive $8 less per unit.

(c) Consumers pay an extra $10 per unit, Suppliers receive $10 less per unit.

(d) Consumers pay an extra $8 per unit, Suppliers receive $12 less per unit.

(e) Consumers pay an extra $4 per unit, Suppliers receive $16 less per unit.

Reference no: EM132015017

Questions Cloud

Unemployment rate and inflation rate : How will your policy recommendation impact interest rates, the unemployment rate, and the inflation rate?
What is special about industry : What information asymmetries, price discrimination opportunities or other market characteristics explain this situation?
What would your return be without the leverage : What would your return be without the leverage? what would your return be if the entire $10,000 was your own money?
What is the after-tax cost of equity financing : What is the after-tax cost of debt financing? What is the after-tax cost of equity financing?
Compare with the pre-tax equilibrium : The government imposes a $20 per-unit tax to be legally paid by consumers. Compared with the pre-tax equilibrium:
Price elasticity of demand : If the demand for a product is highly Inelastic, that implies the following, EXCEPT:
How you might apply the skills developed in writing : Describe how you might apply the skills developed in writing your integrative project to career activities mentioned in the two articles.
What is a graph of the marginal cost curve : What is a graph of the marginal cost curve? How to derive the marginal revenue function for A? How to derive the optimal price and quantity for A?
The programs features and troubleshooting common problems : A gamepad is a handheld console with buttons and other input mechanisms you typically press with your thumbs to play a game.

Reviews

Write a Review

Business Economics Questions & Answers

  Index of globalization

The KOF Index of Globalization, provided by the KOF Swiss Economic Institute, measures globalization on economic, social, and political dimensions. Provide a brief description of this index and its ranking. Specifically, what factors are considered i..

  Alice was employed by the beaufort distributing company she

alice was employed by the beaufort distributing company. she worked at an offsite location keeping track of the

  Larger and the amount difference

Find out which of the following investments is larger and the amount difference after 28 years.

  Safety and effectiveness of foreign prescription drugs

Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Dewey has been doing some research into how he can increase the Company’s revenues and thereby really impress..

  Product initial useful life

How much is it worth to the firm to be able to extend the product's life by 3 years, at a cost of $50,000, at the end of the product's initial useful life?

  Simple linear regression

Are the assumptions the same as under a simple linear regression. What does TSLS imply about the data if a strong F is found.

  Absolute advantage in both shoes and refrigerators

Using the following exhibit from the textbook, explain how the U.S. can gain in trade even though it has an absolute advantage in both shoes and refrigerators.

  Transnational terrorist activities and threats

How do social, economic, and political factors influence the environment contributing to transnational terrorist activities and threats?

  What are the outstanding faults of the economic system

What are the outstanding faults of the economic system according to Keynes? What is the social philosophy implied by the General Theory? What gave The General Theory a revolutionary quality, and how was it (mis)interpreted, according to Hyman Minksy?..

  Explain the opportunity cost

for example, after you explain opportunity cost in your own words, you can give the example like, “after you graduate with a BA/BS, the opportunity cost to go on to the graduate school is your work experience and salary.)

  Explain why there is a natural unemployment deficit

Explain why there is a natural unemployment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.

  Soybean meal exemplifies typical demand relationship

The world market demand for soybean meal exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for soybean meal in the world. Assuming soybean meal is a(n) normal good, a(n) increase in price..

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