Calculate the deadweight loss

Assignment Help Business Economics
Reference no: EM13801016

Suppose the demand and supply for wine within the U.S. is:

Qd = 100 - 20P [U.S. demand curve]

Qs = 20 + 20P [U.S. supply curve]

Suppose the demand and supply for wine in the rest of the world (R.O.W.) is:

Qd = 80 - 20P [R.O.W. demand curve]

Qs = 40 + 20P [R.O.W. supply curve]

Calculate the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.

[Note: P = price per unit; Qd = billions of units demanded; Qs = billions of units supplied]

Reference no: EM13801016

Questions Cloud

Identify your potential stakeholder and their characteristic : Identify your potential stakeholders and their characteristics in your organization using the tools and techniques described in PMBOK.
After issue bond will increase decrease or nothing changes : Investment firm isuued $1000 per value bond conversion price $25 share issue underlying price $20 1.Calculate convertible issue & ratio 2. After issue bond will increase decrease or nothing changes in bond? Underlying price $23 changed constant is th..
Calculate the dead-weight loss due to the sales tax : Suppose the market for cigarettes is characterized by the following information: Suppose the government imposes a sales tax of $2 per unit. Calculate the Dead-WeightLoss due to the sales tax.
How do you define a productive day : How do you define a productive day - What things do you consider important in motivating and involving people in organisational change?
Calculate the deadweight loss : Suppose the demand and supply for wine within the U.S. is: Suppose the demand and supply for wine in the rest of the world (R.O.W.) is: Calculate the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.
Achieve a common goal or set of goals : Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve a common goal or set of goals?
States gained less power relative to the federal government : Over the years, have states gained more or less power relative to the federal government. Please discuss and cite examples to support your argument
Depreciation using the units of production method : You purchase a residential home in July 10th 2013 that you are going to use as a rental property. You paid $250,000 and the land was valued at $50,000. What is your allowable TAX depreciation for 2013. You purchase a dump truck for $75,000 that you e..
Communicating in a diverse society : Communicating in a Diverse Society

Reviews

Write a Review

 

Business Economics Questions & Answers

  Q1 assume that serendipity bank has overload reserves of

q1. assume that serendipity bank has overload reserves of 8000 and checkable deposits of 150000. if preserve ratio of

  Firms analysts estimated the quantity of fresh salmon

A major producer of consumer goods set out to forecast the price of fresh salmon three years ahead. Such a forecast was needed in deciding whether the firm should enter the business of supplying salmon. The firm's analysts estimated the quantity of f..

  Electoral competition model

You can suppose any single peaked preference which you want and Characterize the equilibria of the model.

  Propose how you would use parallel loans to execute the

rom the Blades' Use of Long-Term Financing case study, formulate an overall corporate financial strategy to support the long-term financing of Blades, Inc.

  What interpretation would you give the exponent for r

What interpretation would you give the exponent for R? Why do you suppose R was included in the equation as a variable?

  Q1 a us resident can earn 6 percent interest on a one-year

q1. a u.s. resident can earn 6 percent interest on a one-year bank deposit of 100000 at home. alternatively she can

  Demonstrate how the gi bill affected economic growth

Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer.

  Summarizes the results of your macroeconomic analysis

Your final project will require you to examine any foreign currency of your choice (preferably one from an emerging market), and provide an analysis of that currency against the U.S. dollar over the 5-year period ending with 2010

  The constant or intercept term in a statistical demand study

The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:

  Qa brewery is considering two potential production

q.a brewery is considering two potential production investmentsoption a costs an initial 2 million as well as will

  What is this monetary policy called

By raising and lowering short-term interest rates to keep inflation moving at a steady pace, many central bankers and academics thought they had finally found a monetary policy solution to conquer booms and busts of the business cycle.

  Valid mathematical expression for total revenues

Micro media offer computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micro media is currently planning a two-day seminar ..

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