Determine who will bear the burden of the tax

Assignment Help Econometrics
Reference no: EM13202503

Assume that Milk is perfectly elastically. If there is a $.20 tax on milk, who will bear the burden of the tax? Assume producers have the legal incidence. Graphically depict and describe. Shade the loss in consumer's surplus. and deadweight loss.

Reference no: EM13202503

Questions Cloud

Define what are the automatic stabilizers : Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession. What is the 'Crowding Out' e..
Working capital financing policies : Finance permanent net working capital with equity and temporary net working capital with a short-term loan at 12% and calculate the cost of each option. Which would you choose? Why?
How did the recent financial crisis affect financial service : What factors led to the mortgage default crisis How did mortgage defaults affect banks involved in mortgage lending and mortgage investing Securitization TARP What do these mean How did mortgage-backed securities spread losses during the mortgage ..
What utility levels will smith and jones enjoy : Jones on the other hand regards ham and cheese as perfect substitutes-she is always willing to trade 3 slices of ham for 4 slices of cheese, and her utility function is given by Uj+4h+3c. Total endowments are 100 slices of ham and 200 slices of ch..
Determine who will bear the burden of the tax : Assume that Milk is perfectly elastically. If there is a $.20 tax on milk, who will bear the burden of the tax Assume producers have the legal incidence. Graphically depict and describe. Shade the loss in consumer's surplus. and deadweight loss.
Compute and interpret the sample correlation coefficient : The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars) for a product. Daily Demand (y) Unit Price (x) a. Compute and interpret the sample covariance for the above data. b. Compute and interpret the s..
Determine the range and interquartile range : Before Missy decides the discount policy, she needs a better understanding of the dollar-amount distribution of the mail orders she receives. Missy had an assistant randomly select 50 recent orders and record the value, to the nearest dollar, of e..
How the sailors will ensure equality of utility : There are 200 pounds of food on an island that must be allocated between 2 marooned sailors. The utility function of the first sailor is given by Utility= ( F1) Where F1 is the quantity of food consumed by the first sailor. For the second sailor u..
Accounting for stock splits and dividends : What was the average price at which the company originally sold its stock and reconstruct the equity statement above to reflect a four for one stock spit.

Reviews

Write a Review

Econometrics Questions & Answers

  How much must be saved in fuel cost each year

The national highway traffic safety administration.raised the average fuel efficiency standard to 35.5 miles per gallon for cars and light trucks by the year 2016. The rules will cost consumers an average of $434 extra per vehicle in the 2012 mode..

  Determine the firms output and price

Under patent protection, a firm has a monopoly in the production of a high-tech component. Market demand is estimated to be: P = 100 - 0.2Q. The firm's economic costs are given by: AC = MC = $60 per component.

  Determine the total cost for each manufacturing

The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2.112 hours, and the anticipated overhead costs are $840,576 for the year. The machine were used by workers on projects K52 and J57 on Decembe..

  At what rate would the npv become zero

Determine the Net Present Value of the cash flow at annual interest rates of 15%, 20%, and 30%. At what rate would the NPV become zero What is such a rate called Also, calculate the payback periods, both simple and discounted at 15% per year.

  Compute the annual income you will receive during retirement

Assume that savings are invested at the end of each calendar year. Assume that during your working life you earn a return of 8% per year, and that when you retire at age 65 you move your assets into more conservative investments and earn a return ..

  What is the absolute size of it public debt

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.What ..

  What interest should she get to be able to retire as desired

Ann Isabel, a recent graduate from Tech, would like to be a millionaire when she will retire after 30 years. She would like to start with a deposit of $1,000 at the end of the first year and increase it every year by $400 thereafter. What interest..

  Fitting a straight line to a set of data yields

An agent for a residential real estate company has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal, the agent would like to use the size of an apartment, as defined by square..

  What is the marginal cost of the first worker

You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below. Workers Cost Output Revenue 1 $300 50 $350 2 600 140 675 3 900 ..

  Find gross value added

Import Duty-1000  Excise Duty-1000 Outpout sold- 5000 Price per unit of output- 6 Change in stock-600 Intermediate Cost- 16,000 Subsidy-500

  Will the saving rate rise over time or fall

The economy of Sonrisa has 1000 people in three income categories: poor, middle class, and rich. The poor ear $500 per year and have to spend it all to meet their consumption needs. The middle class earn $2,000 per year, of which $1,500 is spent a..

  Identifying the unemployment rate

Recognize the unemployment rate as an economic indicator for whirlpool, and describe why this indicator would be a good choice.

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