How to raise the equilibrium price

Reference no: EM13175691

An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price.
a. exactly $1.00 per gallon.
b. by less than $1.00 per gallon.
c. by more than $1.00 per gallon.
d. too little information to determine the impact on the equilibrium price.

Reference no: EM13175691

Questions Cloud

How to make-versus-purchase situation for a component : A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its low-priced products. The component can be purchased at a variable wholesale price of P=1200+50y where y is the number of items.

Define demand is inelastic : Suppose the equilibrium price in the market is $24 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.5. Then we know that: A. demand is inelastic. B. marginal revenue is $8.

Explain inverse demand and supply functions : Consider a market characterized by the following inverse demand and supply functions: PX = 50 - 4QX and PX = 10 + 2QX. Compute the surplus producers receive when a $30 per unit price floor is imposed on the market.

Explain market demand and market supply : In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units

How to raise the equilibrium price : An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price. a exactly $1.00 per gallon.

Explain lifetime medical costs of treating aids : he most recent studies of lifetime medical costs of treating AIDS? a)have shown a significant increase in the estimates due to earlier diagnosis b)have shown a significant increase due to the use of new drugs including protease inhibitors

What is the increase in the excise tax on alcohol : An increase in the excise tax on alcohol? a)will have no effect on alcohol consumption b)will generate minimal tax revenues for the federal government c)couped with a uniform drinking age nationwide would save lives

Explain rent-seeking behavior : Rent-seeking behavior results in a)increased economic activity by promoting efficiency b)lower economic acitivity by diverting resources to less-productive uses c)a more equitable distributionof income and wealth

Explain factor leading to rising health care costs in the us : What is the most important factor leading to rising health care costs in the United States since 1980? a)The increased use of expensive medical technology b)Teh aging U.S. Population

User Account

All Pages