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

  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