User Account

All Pages

What might be the long-run effect of the rising price of gas

Assignment Help Microeconomics
Reference no: EM133440696

Assignment:

When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts.

Assume that gas prices suddenly increased.

  1. What might be the long-run effect of the rising price of gas?
  2. Who benefits and who is harmed by the price increase?
  3. Are low-income households disproportionately harmed compared to high-income households? Why?

Reference no: EM133440696

Questions Cloud

Describe the concept of supplier-induced demand : Besides medicine, name another field where the provider of the service can convince people that they need products or services that they really don't need.
What is the opportunity cost of producing 1 tonne of iron : Suppose that Indonesia suggests that Australia sells iron to Indonesia for 2.0 tonnes of petrol for every tonne of iron.
Describe the bolshevik revolution : For China, what was the "Great Leap Forward" under Mao? Also, name one or more of the Four Horsemen of the Apocalypse regarding this policy.
What is the inconsistency in ß1 : If funds and risktol are positively correlated, what is the inconsistency in ß1, the slope coefficient in the simple regression of pctstck on funds?
What might be the long-run effect of the rising price of gas : What might be the long-run effect of the rising price of gas? Who benefits and who is harmed by the price increase?
Evaluating a intervention on an extra financial resource : My paper is about evaluating a program/intervention on an extra financial resource to improve health outcomes/Education in Indonesia or a program/intervention.
What is the irr : If Dr. Smith buys a machine for $5000 and is able to improve the earnings of her practice by $2000 a year for five years.
Analyze the electronic prescribing systems in hospitals : The case study of the journal "Electronic prescribing systems in hospitals to improve medication safety: a multimethod research programme".
Discuss taste-based discrimination theory : According to the Becker model of preference based discrimination on the part of employers, it is true that firms maximize utility and not profits.

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the free-market equilibrium

Suppose that the demand for a good that is produced competitively is given by the equation Qd =61- (1/5)P , and its supply is given by the equation Qs =(1/4)P -2 Answer the following questions for this market.

  Explain which factors would cause the is curve

Explain which factors would cause the IS curve to be steeper, and which would cause it to be flatter. When is the IS curve more likely to be steep.

  What was the cumulative loss in output over the course

Before the latest financial crisis and recession, when was the largest recession of the past 50 years, and what was the cumulative loss in output.

  Write down the overview of specific economic problems

Overview of Specific Economic Problems. This could be based on a variety of different issues. Here are just a couple of examples: Economic impact of interaction

  How is net national product-nnp calculated

How is net national product (NNP) calculated a.Saving is subtracted from the total income of a nation's citizens. b.Saving is subtracted from the total income of a nation's permanent residents. c. Depreciation losses are subtracted from the total ..

  Consider a market with both foreign and domestic (

Let's consider a market with both foreign and domestic (i.e. U.S.) production. Suppose that domestic (U.S.) demand is given by QD = 6000 - 50P and domestic supply is QS . Foreign producers can supply any quantity at a price of $40.

  Who would pay a greater share of special income taxes

Who would pay a greater share of special income taxes: employers or workers? Explain, considering the price elasticities of supply and demand for labor. Will the deadweight loss from personal income tax in the U.S. be relatively large or relati..

  Define the theory of economic growth

More than one development economist has opined that "poor countries are poor because they are poor." What might at first sound like a vacuous and not very.

  What is the growth rate of real gdp

Suppose in 1990, Real GDP is $10,000 and the GDP deflator is 50. In 1991, Nominal GDP is $15,000 and the GDP deflator is 150. Given this information and holding everything else constant, what is the growth rate of Real GDP from 1990 to 1991

  Curtin university

In the analyses below, when drawing your diagrams assume that students can choose among only two products on campus, namely tobacco and food.

  Write a paper addressing the concept of price equilibrium

Write a paper addressing the concept of price equilibrium. Find one article on the topic in the LIRN library and describe what each indicates related to price equilibrium and a change in price as demand shifts

  Calculate tr mr mc tc and profit in the short run

How many scoops of ice cream should Frank produce in the short run to maximize profits? What price should he charge? Calculate TR MR MC TC and Profit

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd