What percentage of the total surplus is lost

Assignment Help Business Economics
Reference no: EM132160419

In a competitive market, the demand and supply curves are Q(p) = 12 - p and S(p) = 5P, respectively. What percentage of the total surplus is lost if the government imposes a sales tax (ad valorem) of 20% collected from the producer?

Reference no: EM132160419

Questions Cloud

Equilibrium conditions for the heckscher-ohlin model : Write the factor market equilibrium conditions for the Heckscher-Ohlin model. Use them to explain what happens to both real product wages when the price
What is the relationship between interest rate level : What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the price
What will you take away from this experience : Scheduled field trip to a prison for Corrections class. Went to visit New River Valley Regional Jail and River North Correctional Center.
What is the current us policy on using waterboarding : Why is waterboarding being considered as a technique now, when we have faced greater threats in the past?
What percentage of the total surplus is lost : What percentage of the total surplus is lost if the government imposes a sales tax (ad valorem) of 20% collected from the producer?
Describe how you would set up a NetApp Lab environment : ICT226 - Information Storage and Management Assignment, Box Hill Institute, Australia. Describe how you would set up a NetApp Lab environment
What determines sensitive parameters : What determines "sensitive parameters" values and why is this important?
Why is it so important in terms of today : Why did Fed create Reverse Repo Facility, Why is it so important in terms of today's monetary policy? And what is a "retention pond", why and when was it formed
What is the role of police : What is the role of police? Which amendments to the U.S. Constitution directly affect policing?

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