How much is the deadweight loss

Assignment Help Business Economics
Reference no: EM131104721

First Problem The number of bottles of chardonnay demanded per year is $1, 000, 000 − 60, 000P , where P is the price per bottle (in U.S. dollars). The number of bottles supplied is 40, 000P. 1. What is the equilibrium price? What is the equilibrium quantity? 2. Suppose that the government introduces a new tax such that the wine maker must pay a tax of $5 per bottle for every bottle that he produces. What is the new equilibrium price paid by consumers? What is the new price received by suppliers? What is the new equilibrium quantity? 3. How much is the tax collected by the government? How much is the deadweight loss?

Reference no: EM131104721

Questions Cloud

What factors do you think are associated with difference : Why do you think UCF's alcohol violation rate is so drastically different from the University of Miami? What factors do you think are associated with the difference?
Use the policy improvement algorithm to determine : The price of a certain stock is fluctuating between $10, $20, and $30 from month to month. Market analysts have predicted that if the stock is at $10 during any month, it will be at $10 or $20 the next month, with probabilities 4/5 and 1/5 respect..
How sscs stockholders might view each of these actions : The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though. SSC plans to shift its emergency funds from Treasury bonds to common stocks.Discuss how S..
How would the deficit impair daily functioning in academic : Considering children and adolescents at various developmental levels, describe a deficit in learning or memory. What brain structures and circuits are related to your selected deficit? How would the deficit impair daily functioning in academic, so..
How much is the deadweight loss : First Problem The number of bottles of chardonnay demanded per year is $1, 000, 000 − 60, 000P , where P is the price per bottle (in U.S. dollars). The number of bottles supplied is 40, 000P. How much is the tax collected by the government? How much ..
Is maisy an employee or another type of worker : Is Maisy an employee or another type of worker - Assuming Maisy is an employee, who is Maisy's employer, Technicalities or IS?
What legal remedy would release turban from contract : Turban, an immigrant who speaks little English, enters into a contract to pay $300 per month for ten years to purchase an auto from Travel Motor Co. The appraised retail value of the car is $5,000. What legal remedy would release Turban from his c..
The official unemployment rate-force participation rate : Use the following data to calculate (a) the size of the labor force, (b) the official unemployment rate, and (c) the labor force participation rate (defined in Ch. 3) for a hypothetical economy with:
Calculate the working capital and current ratio : Calculate the working capital and current ratio at each balance sheet date. Round your current ratio answers to two decimal places. Working Capital = Current Assets less Current Liabilities.

Reviews

Write a Review

Business Economics Questions & Answers

  The store financed the refrigerator by charging

A refrigerator sold for $500. The store financed the refrigerator by charging 0.5% monthly interest on the unpaid balance. If the refrigerator is paid for with 30 equal end-of-month payments:

  Michael porters five-force model

Why does Michael Porter admonish companies will not change his competitive positioning any more regularly than once every four or five years.

  Discuss both moral hazard and adverse selection issues

Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want to price the extended warranty at 2% of the product price? Discuss both mor..

  Annual replacement and downtime costs could be eliminated

You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. The replacement and downtime cost ..

  Analyze financial statements

Explain with examples how these three users (investor, manager and creditor) analyze financial statements and how they use it. If you were one of the three users, what statement(s) entry or entries, and ratios would you observe more critically and wh..

  A nation will gain from trade

A nation will gain from trade if it:

  Conviction that individuals had the inherent capacity

According to Van Wormer and Link (2015), conviction that individuals had the inherent capacity to achieve positive change through drawing on their own resources and on resources in their surroundings is fundamental to progressive social work. Describ..

  Marginal cost of producing a pack of cigarettes

Further assume that the marginal cost of producing a pack of cigarettes is $6, and that the market for cigarettes is perfectly competitive. Assume that each pack of cigarettes smokes does $6 worth of health damage to the smoker in the form of incr..

  How the economy evolves over time in the solow model

Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. This is not particularly realistic, for reasons discussed in Chapter 4. Draw the Solow diagram in this case. Suppose the economy begi..

  Illustrate what public policies might be used to address one

Illustrate what public policies might be used to address one of the problems you identified in your response to the question above.

  What is the present worth of the expected income

A rolled model product company purchased a machine for ram clambering large I- beam. The company expects to bend 95 beam at $2000 per beam in each of the first year, after which company expects to bend 125 beams per year through 9 years. If the compa..

  To counter the power of the veto

To counter the power of the veto, the Framers gave Congress the veto ______, which is the power to overturn a presidential veto with a two-thirds vote in each chamber.

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