Explain two extreme demand and supply conditions

Reference no: EM13179562

1.) Recently, the Obama administration proposed a $1.00 per unit (pack) excise tax on cigarettes (which would be imposed legally or statutorily on cigarettes sellers). Some news reports have suggested that the proposed tax would increase cigarettes prices by $1.00 per pack and be paid by smokers (cigarette buyers). Using (separate) competitive supply and demand diagrams of the cigarettes market carefully show and explain TWO extreme demand and supply conditions under which these news reports would be true.

2.)Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the economy's
output combination of C and K goods with price controls versus the economy's output combination without price controls. Explain your reasoning.

Reference no: EM13179562

Questions Cloud

Compute the amount of each of the 12 payments : A person arranges to repay a a$1000 bank loan in 10 equal payments at a 10% annual interest rate. Immediately after his third payment he borrows $500, also at 10% annual interest rate. When he borrows the $500, he talks the banker into letting him..

Explain net ionic equation for any reaction : which of the solutions included in this experiment could be used to distinguish between the pairs of solutions. In each case, describe the observations you would make and write a net ionic equation for any reaction that would occur.

Different alkenes derived from the dehydration : Draw (in increasing energy ordering) 3 different alkenes derived from the dehydration of 1,2-dimethylcyclohexanol

How much each annual payment should be : A person desres to accumulate $18500 over a period of five years from now so that a cash payment can be made foe a new car. to have this amount when t is neede, annual payments at the end of each year will be made to a savings account that earns 8..

Explain two extreme demand and supply conditions : Some news reports have suggested that the proposed tax would increase cigarettes prices by $1.00 per pack and be paid by smokers (cigarette buyers). Using (separate) competitive supply and demand diagrams of the cigarettes market carefully show an..

Discuss the sign and magnitude of the estimated coefficient : The following model is a simplified version of the multiple regression model used by Biddle and Hamermesh (1990) to study the tradeoff between time spent sleeping and working and to look at other factors affecting sleep: sleep =b0 + b1totwrk + b2e..

State a gauche conformation of hexane viewing down : Here are four of my question, my professors wants us to represent this newman projection and sawhorse projection. (1) a gauche conformation of hexane viewing down the C2-C3 bond

Calculate the annual net benefits of raising price of wastes : Imagine that the current price of waste disposal is $0.025/lb and the average waste disposal is 2.40 lb/p/d. When the price was previously $0.01/lb, the average waste disposal was 2.52 lb/p/d. Assume that the marginal social cost of waste disposal..

Calculate the eanb for each project : Suppose the NPV for the 20-year ring levee is $3 million and the NPV for the 60-year floodwall is $5 million, both discounted at 5%. Calculate the EANB for each project. Then, use the replication method to determine which project should be adopted..

User Account

All Pages