Percentage of the economic burden of the tax

Assignment Help Business Economics
Reference no: EM132026996

The price elasticity of demand for bobble heads is -2; the price elasticity of supply is 3. How much will the price of bobble heads change with a unit tax of $1? What percentage of the economic burden of the tax is borne by producers or consumers, respectively?

Reference no: EM132026996

Questions Cloud

How can a price ceiling on tickets lead to scalping : How can a price ceiling on tickets lead to scalping? Is price an effective rationing mechanism under a binding price ceiling? Why or why not?
Is this added as part of operating cash flow or subtracted : This should create a cash flow of how much? Is this added as part of the operating cash flow or subtracted?
New entry and decreased demand elasticity : You should adjust your price to due to the new entry and decreased demand elasticity.
Larger burden of the tax : Which type of traveler will bear the larger burden of the tax? Briefly explain your reasoning.
Percentage of the economic burden of the tax : The price elasticity of demand for bobble heads is -2; the price elasticity of supply is 3. How much will the price of bobble heads change with a unit tax of $1
How do you calculate amihud ratio daily : How do you calculate Amihud ratio daily? How do you calculate daily volume?
Growth rates between developed and undeveloped countries : The past 500 years have seen divergence in GDP and growth rates between developed and undeveloped countries.
Result of the increased competition : Suppose the number of firms you compete with recently increased. You estimated that as a result of the increased competition, the demand elasticity
What would be the value of the loan : What would be the value of the loan if the company is paying the bank 4 percent every 6 months instead of 8 percent per year?

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