Illustrate the market for bottle of flea shampoo

Assignment Help Business Management
Reference no: EM131675494

1. Suppose the market for a bottle of flea shampoo can be described by the following equations: Demand: Qd = 17 - .25P Supply: Qs = 3 + 1.75(P - tax) Where P is the price in dollars per bottle and Q is quantity in thousands of bottles.

A. Draw the model to illustrate the market for bottle of flea shampoo assuming tax = 0.

1) Label the equilibrium price and equilibrium quantity.

2) Calculate the X intercept for supply and the X and Y intercepts for demand.

B. Suppose the government imposes an excise tax of 50 cents per bottle to pay for dogs in county shelters.

1) Add this tax to your graph.

2) What will the new equilibrium price and quantity be after the tax?

3) How much revenue will the government raise?

4) On a new graph, show the change in welfare the tax brings. How much economic surplus is lost due to the tax?

Reference no: EM131675494

Questions Cloud

Utilizing two different methods for current demand : Utilizing two different methods for current demand and two different methods for future demand as outlined in the textbook.
Payment of government unemployment benefits : What effect does the payment of government unemployment benefits have on the unemployment rate? On the severity of recessions?
Devise a plan for accommodating conflicting responses : Devise a plan for accommodating conflicting responses for the same procedure from two (2) different people you interviewed.
Define human resources role in strategic planning : Define human resources role in strategic planning in your own words
Illustrate the market for bottle of flea shampoo : A. Draw the model to illustrate the market for bottle of flea shampoo assuming tax = 0.
Mistaken repossession of the wrong vehicle breach of peace : Ford Motor Credit Corporation (FMCC) hired Traciers & Associates (Traciers) to repossess a white 2002 Ford Expedition owned by Marissa Chapa
Inventory position is defined as : Inventory position is defined as
Position of the phillips curve over time : Are shocks to productivity or shocks to investment more likely to explain the negative relationship between unemployment and inflation?
Review case study of the fordyce bank and trust company : Fordyce Bank & Trust Company (Bank) issued several loans to Bean Timberland (Bean) so that Bean could purchase timber from various landowners.

Reviews

Write a Review

Business Management Questions & Answers

  Reflecting on different approaches to strategy

This week, the focus has been on reflecting on different approaches to strategy and the capability of those to utilize existing positions and strengths versus their encouragement of the development of alternative or creative outcomes.

  Organizational change present successful and unsuccessful

organizational change present successful and unsuccessful examples of changeas sir issac newton pointed out a body in

  Important information about workplace issues

How do perceptual hypotheses and assumptions based upon theme play a role in conflict at work

  How coordination needs influence an organizations structure

Explain the roles of differentiation and integration in determining the right organizational structure. Discuss how coordination needs influence an organization's structure.

  Describe the organizational structure

Describe the organizational structure at the Coca-Cola Company (what form of structure does the company have?). Include any information.

  Explain why an individual''s perception of being plateaued

Resent research suggests that cater plateaus are more complex than previously thought. Briefly explain why an individual's perception of being plateaued is significant

  Attitudes influence attempts by leaders to introduce change

How do personal attitudes influence attempts by leaders to introduce change?

  How can the culture be altered in a positive manner

How can the culture be altered in a positive manner to improve relationships with management and employees?

  New emerging technologies

What do you think that the hazards would in the event of an organization not striving to stay at the forefront of these new emerging technologies?

  Analyze the key concepts related to the talent pools

Analyze the key concepts related to the talent pools and the talent review process

  Developing financial insights

You just turned 35 and have been saving for an around-the-world vacation. You want to take the trip to celebrate your 40th birthday. You have set aside, as of today, $15,000 for such a trip. You expect the trip will cost $25,000. The financial instr..

  Describe the various type of funding available to a business

Describe the various types of funding available to a business. Explain the advantages and disadvantages of each type of funding. Identify the probable sources for obtaining funding for your business.

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