Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question
Suppose you work for the state government of California. Due to the heavy traffic jam on I-880, the state has decided to decide to construct a new highway. To fund a part of construction, the state needs to generate tax revenue. You, as a tax analyzer in the government, need to propose the amount of the tax. After careful examination, you have decided that collecting tax from the consumption of notebook PC. A consumer pays $t per unit of notebook PC consumed. The demand and the supply curves in free market (without tax) are represented by the following equations:
D: QD = 80,000 - 20P
S: QS = 30P - 20,000
(i) What are the market equilibrium price (P*) and quantity (Q*) in the notebook PC market in California when no tax is imposed.
(ii) What is the price elasticity of demand at the market equilibrium when no tax is imposed?
Now assume that a per unit tax, t = $10 is imposed to the consumers.
(iii) What is the new market equilibrium price under the tax policy? What is the price that buyers pay (PB)? Price that sellers receive (PS)?
(iv) You have been asked to find the amount of per unit tax t that would maximizes the tax revenue from this market. Let's denote the tax revenue maximizing t by tMAX. Find out tMAX.
What are the basic analytical frameworks of modern economics? The fundamental analytical framework of modern economics: The fundamental analytical framework for an econom
can i get a case study on share market or any other company about their exceptions to the law of demand?
is it just assumed that a monopoly graph is showing economic profit instead of accounting profit
What are the economic implications of income inequality? How can economic theory be helpful to analyze the causes and impact of income inequality? What are the concerns and how the
What does economic theory contribute to managerial economics? Explain
Q. What is International Monetary Fund? International Monetary Fund: An international financial institution established after World War II with the goal of stabilizing and regu
E-goods are returning to price levels which we thought they had left behind, again the inevitable price elasticity. Why is it so certain that price elasticity will cause those pric
social welfare ordinal
(ii) Find a real-world example of second-degree price discrimination. Describe the important aspects of your example in detail and analyze it using economic theory. In particular,
What is paramagnetic?
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd