Show the changes in the equilibrium price and quantity

Assignment Help Business Economics

Reference no: EM13147699

Suppose market demand for movie tickets (in millions per year) is given by the equation QD = 19-2P, while tickets are supplied according to the market supply equation Qs = P-2. Suppose the government imposes an excise tax on movie tickets of $2 each. An excise tax is a per unit tax on suppliers. In the graph in 2b, show the changes in the equilibrium price and quantity. Show the areas corresponding to total taxes collected, taxes paid by consumers, and taxes paid by producers. I calculated the price to be $7 and quant to be 5 on first part. After, I thought the price would be $7.67. Is this correct? and if not, please explain

Reference no: EM13147699

Questions Cloud

Environmental ethics be a part of environmental science : How do these ethics influence they way we perceive environmental issues? Why should/ or should not environmental ethics be a part of environmental science?

Amount and character of recognized gain or loss : Silvia receives all 1,000 shares of Leaf Corporation stock worth $50,000 and a two-year note with a $5,000 FMV. What is the amount and character of the recognized gain or loss?

How be explained by differences in capital per worker : how much of the differences in output per worker between Spain and India can be explained by differences in total factor productivity and how much can be explained by differences in capital per worker.

What would the effect of different chlorides : What should know about the nature of the chemicals in a chemical waste dump, if montmorillonite is to be used as a clay liner?

Show the changes in the equilibrium price and quantity : calculated the price to be $7 and quant to be 5 on first part. After, I thought the price would be $7.67. Is this correct? and if not, please explain. show the changes in the equilibrium price and quantity.

Find the probability selected eligible voters actually vote : Given that 61% of eligible voters actually did vote, find the probability that among 1002 randomly selected eligible voters, at least 701 actually did vote.

What is the molality of a solution : What is the molality of a solution in which 15g of I2 is dissolved in 500g of alcohol?

Amount withdraw-interest compounded annually : Maria Alvarez is investing $300,000 in a fund that earns 8% interest compounded annually. What equal amounts can Maria withdraw at the end of each of the next 20 years?

Two of the eight categories : "compare and contrast two of the eight categories that attempt to explain criminal behavior". Class is CJS200 at University of phoenix......need it by end of night though

User Account

All Pages