User Account

All Pages

How big an excise tax will the government need

Assignment Help Econometrics
Reference no: EM131131887

Consider the market for soft drinks. You know that the demand curve in this market contains the points (Q, P) = (100,000, $1.00) and (50,000, $2.00). You also know that the demand curve is linear. The linear supply curve contains the points (Q, P) = (0, $0) and (50,000, $1). The government decides they want to decrease consumption of soft drinks from its current equilibrium level to 50,000 drinks. You are asked to analyze this situation and provide answers to the following questions.

How big an excise tax will the government need to implement in order to reduce consumption to 50,000drinks?

Reference no: EM131131887

Questions Cloud

Consider a computer without priority interrupt hardware : Explain how a priority can be established in the interrupt service program.
Write an essay in which you compare art spiegelman maus : Write an essay in which you compare Art Spiegelman's Maus to a more traditionally formatted story assigned for this class or a comic book you are familiar with. How are elements including theme, plot, and conflict different or alike in the two wor..
Determine the force f in the prop and the magnitude : The 25-kg rectangular access door is held in the 90° open position by the single prop CD. Determine the force F in the prop and the magnitude of the force normal to the hinge axis AB in each of the small hinges A and B
Differentiate between the members of each of capital budget : Differentiate between the members of each of the following pairs of capital budgeting terms:  (a) Independent versus mutually exclusive projects;  (b) Unlimited funds versus capital rationing;
How big an excise tax will the government need : Consider the market for soft drinks. You know that the demand curve in this market contains the points (Q, P) = (100,000, $1.00) and (50,000, $2.00). How big an excise tax will the government need to implement in order to reduce consumption to 50,0..
Distribution of cash to the partners : The allocation of the gain or loss on realization to the partners.
Estimates of the marginal effect of gender on probability : You want to estimate whether there is a relationship between gender and smoking at your university. In spite of these large differences, all three models yield similar estimates of the marginal effect of gender on the probability of smoking. How ca..
Rodriguez and escobedo income ratios : The Best Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Rodriguez $45,000 and Escobedo $20,000.
Express the price elasticity of demand : Given the following demand curve ln(Qt) = b0 + b1ln(Pt) + b2ln(Yt) + ut, Express the price elasticity of demand in terms of the coefficients in (1)

Reviews

Write a Review

Econometrics Questions & Answers

  Are functions homogeneous in income and prices

Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). Repeat part (b) for the case in which px..

  What is the optimal level of pollution

The cost of pollution (in billions of dollars) originating in the paper industry is Cp = 2P + P2. Where P is the quantity of pollutants emitted (in thousands of tons). The cost of pollution control (in billions of dollars) for this industry is Cc ..

  Determine total cost function-marginal and average cost

Suppose production utilizes capital (K) and labor (L) and that production technology is summarized by the following function:q=KL a)find the cost minimizing input demands when prices of capital and labor are respectively given by r and w.

  Verify that demand becomes less elastic moving down demand

Let a linear demand function be expressed as Q = a + bP, where b

  Are aluminum and steel substitutes or complements

If the cross-price elasticity of aluminum with respect to steel is 2.0:a) what happen to the quantity demanded of aluminum if the price of steel increases b) Are aluminum and steel substitutes or complements

  Why she has an enforceable contract to buy the house

Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally con¬tracts to buy Smith's house for $100,000, with the closing (transfer of the deed) to take place on J..

  What is the increment in income tax caused by the purchase

A small manufacturing company has an estimated annual taxable income of $95,000. Due to an increase in business, the company is considering purchasing a new machine that will generate additional before-tax annual revenue of $50,000

  Do you anticipate earning a profit or a loss

You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 uni..

  How much carpet must be re-manufactured annually

Each year in the United States nearly 5 billion pounds of discarded carpet end up in land fills. In response to this situation, the carpet manufacturer has decided to start a take-back program whereby obsolete carpet is reclaimed at the end of its..

  Compare its position with the curve in that question

Graph the new long-run average cost curve, and compare its position with the curve in that question.

  Preclusion of borrowing in the ramsey model

Consider the household optimizationproblem in the Ramsey model. How do the results change if consumers are not allowedto borrow, only to save?

  What is the marginal cost of producing the 21st unit

Consider the following cost equation: Total Cost (TC) = 160Q -10Q2 + 1.2Q3. What is Total Cost when the Quantity is 20?

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