Please use the supply and demand diagram for the milk market

Assignment Help Macroeconomics
Reference no: EM13335825

Currently the state of ohio imposes no sales tax on food products in grocery stores. Suppose that the government passed a bill to impose a $0.6 sales tax for each gallon of milk on consumers. Please use the supply and demand diagram for the milk market, and do the Tax Incidence analysis

Reference no: EM13335825

Questions Cloud

When it bundled its internet explorer browser with its : In the well known case of United States vs. Microsoft, the US Department of Justice alleged that Microsoft abused "monopoly power" when it bundled its Internet Explorer Browser with its Windows Operating System
What is happening in small countries such as greece why : Economic, Political and Contagion should the United States should be worried about what is happening in small countries such as Greece why or why not
What is the equilibrium price and quantity of the product : Suppose the demand for a product is given by P = 30 – 3Q. Also, the supply is given by P = 10 + Q.
Explain and graphically illustrate the impact of foreign out : Assume that the exchange rate is allowed to fluctuate freely. Use the IS-LM-IP Model to explain and graphically illustrate the impact of foreign output/income, will have on the domestic economy. Be sure label all graphs clearly with the curves and eq..
Please use the supply and demand diagram for the milk market : Currently the state of ohio imposes no sales tax on food products in grocery stores. Suppose that the government passed a bill to impose a $0.6 sales tax for each gallon of milk on consumers.
Calculate the change in the level of real gdp demanded : Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC
How might the government respond to correct this market fail : Suppose production of this good provides an external benefit of $10 for each unit produced. What is the efficient quantity in this market? How might the government respond to correct this market failure?
Do you see any conflicts in a goods-producing versus service : A company is trying to provide goods and services to customers in a balanced customer benefit package CPB. Do you see any conflicts in a goods-producing versus service-providing way of thinking? Illustrate with examples.
What is the cpi relative to 2007 as the base year : You shop for groceries in 2007 and buy $300 of food. Two years later, in 2009, you buy an identical “market basket” of groceries, only this time it cost $318. What is the CPI relative to 2007 as the base year? Show calculations.

Reviews

Write a Review

Macroeconomics Questions & Answers

  What unemployment rates expect to see in this economy

Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy? Suppose short-run output over the next four years ..

  Effects on inflation and real gdp that these policies will

Assume the economy initially is in a long run equilibrium plus the following:  the U.S. dollar is relatively strong against all major foreign currencies.  Suppose the Congress and the President decide to decrease government spending dramatically

  Economic threats or opportunities for the us

Determine the economic implications for the United States of the increase of China and India as significant economic powers.

  What was the best level of emission reduction

Explain how would you decide also what was the best level of emission reduction. Why do you think your approach would be better than others.

  Quantities of specific goods and services

As an employee of the World Bank, you have been asked to research 1 economic concern in an Asian country and write a report on your findings.

  Pricing decision on the basis of elasticity of demand

A tariff I ssimply a tax on imports. Use our model of the excise tax (with  diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer

  Studies indicate that the price elasticity of demand for

Studies indicate that the price elasticity of demand for cigarettes is about -0.4.If a pack of cigarettes currently costs $2.0 and the government wants to reduce smoking by 20%, by how much should it increase the price?

  Determine profit maximizing or loss minimizing output

At a product price of $56, will this company produce in the short run? If it is preferable to manufacture, what will be the profit-maximizing or loss-minimizing output?

  Explain what would happen to the demand for motorola

Explain what would happen to the demand for Motorola picture phones if the price of digital cameras rose

  This scenario displays the law of demand

John is willing to purchase 7 computers. This scenario displays the law of demand. Do you agree or disagree.

  Find beta of the new portfolio

Suppose that you will receive $2000 a year in years 1 thru 5, $3000 a year in years 6 thru 8, and $4000 in year 9 with all cash flows to be received at the end of a year.

  True or false-trends in a firm average fixed cost

Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.

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