User Account

All Pages

Explain the concept of deadweight loss

Assignment Help Microeconomics
Reference no: EM13143361

Explain the concept of deadweight loss. As well as answer the questions: Why does taxing a product lead to deadweight loss? Use an appropriate graph to explain why the deadweight loss is greater the more elastic the demand for a product.

Reference no: EM13143361

Questions Cloud

How many liters of co2 (g) are produced : A student combusts 504.96 grams of ethene gas, C2H4. How many liters of CO2 (g) are produced at a pressure of 0.993 atm and a temperature of 295 K? C2H4 (g) + 3 O2 (g)-> 2 CO2 (g) + 2 H2O (g)
Weighted-average shares of common stock : Grossmont Company reports $1,375,500 of net income for 2009 and declares $192,500 of cash dividends on its preferred stock for 2009. At the end of 2009, the company had 350,000 weighted-average shares of common stock.
How confident of selling all four houses within given time : If the agent has enough time to contact only 15 customers, how confident can she be of selling all four houses within the available time?
Compute the annual payments : Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make 6 equal payments, one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments.
Explain the concept of deadweight loss : Why does taxing a product lead to deadweight loss? Use an appropriate graph to explain why the deadweight loss is greater the more elastic the demand for a product.
Explainusing ideas of random variable and its expectation : Compensation to passengers who lose their luggage. By how much should the airline increase fares? Why? Explain, using the ideas of a random variable and its expectation.
How many liters of co2 (g) are produced : A student combusts 504.96 grams of ethene gas, C2H4. How many liters of CO2 (g) are produced at a pressure of 0.993 atm and a temperature of 295 K? C2H4 (g) + 3 O2 (g) ->2 CO2 (g) + 2 H2O (g)
Percentage-of-completion method of accounting : Calculate the income recognized by Parcell under the percentage-of-completion method of accounting in each of the years 2007, 2008, and 2009.
Allowance method used to account for bad debits : On Oct. 29 of the current year, a company concluded that a customer's $4,400 account receivable was uncollectible and that account should be written off. What efect will this write-off have on this company's net income and total assets assuming th..

Reviews

Write a Review

Microeconomics Questions & Answers

  How much will the firm produce in order to maximise profits

What market structure is used to benchmark allocative efficiency and why do we use it?  Illustrate and explain using a diagram

  Find changes on the equilibrium price

Think the market for personal computers. Assume that the demand is  constant : the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers.

  Movement along the demand curve and a shift in demand

Describe the difference between a movement along the demand curve and a shift in demand and determine what factors cause the supply curve to shift? describe each factor.

  Provide possible solutions for data security

Suppose you are an Executive Chef at a private hotel on the beach in Florida, with sixty rooms; a banquet facility serving up to 175; a coffee bar in lounge, which also provide complimentary cold breakfast;

  Suspension of international trading and financial activities

Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..

  Analyze effect of increased demand on equilibrium position

The perfectly competitive company takes the equilibrium value set through the market and maximizes profit through manufacturing where price, which also equals marginal revenue, is equal to marginal cost.

  Information about marginal revenue

Consider the following demand schedule. Does it apply to the perfectly competitive firm? Calculate marginal and average revenue.

  Determine market structure of low-calorie food company

Determine the market structure in which the low-calorie food company operates and analyze short-run and long-run production and cost functions.

  Encouraging monopoly to social efficiency

Explain how this tax or subsidy would achieve the socially efficient level of output. Among the various interested parties - the monopoly firm, the monopoly's consumers, and other taxpayers - who would support the policy and who would oppose it?

  Fill the profit entries in the payoff table

Company M and N compete for market and decide independently how much to advertise. Every one can expend either $10 million or $20 million on advertising.

  Supply and demand curves - excise tax

The government levies an excise tax of five cents per unit sold on sellers in a competitive industry. Supply and demand curves have some elasticity with respect to value.

  What are the marginal rates of substitution for each person

What are the marginal rates of substitution for each person and what is the formula for the contract curve and draw an Edgeworth box, labeling carefully, and indicate the contract curve.

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