Calculate the deadweight loss of introducing a commodity tax

Assignment Help Econometrics
Reference no: EM131212559

For the linear demand function x = a - bp calculate the deadweight loss of introducing a commodity tax t when the marginal cost of production is constant at c. How is the deadweight loss affected by changes in a and b? How does a change in b affect the elasticity of demand at the equilibrium without taxation?

Reference no: EM131212559

Questions Cloud

Seminar area before beginning the discussion : It is highly recommended that you review the Seminar presentation located in the Seminar area before beginning the Discussion.
Prepare an essay that describing use of an olap data cube : Write a 2 to 3 page essay describing the use of an OLAP Data Cube. Your essay should also describe the operations of Drill Down, Roll Up, Slice, and Dice.
What is the tariff escalation pattern : What is the tariff escalation pattern? - Why does it exist in many countries?
Identifies the specific issue related to human resources : Submit a proposal that identifies and describes the specific topic/issue related to human resources within the specific organization you selected for your project. Include a brief profile of the organization, as well as 2 to 3 credible sources.
Calculate the deadweight loss of introducing a commodity tax : For the linear demand function x = a - bp calculate the deadweight loss of introducing a commodity tax t when the marginal cost of production is constant at c. How is the deadweight loss affected by changes in a and b? How does a change in b affec..
Identify the benefits of using penetration testing : Identify the benefits of using penetration testing and vulnerability assessments relative to threats. Explanation about penetration testing and vulnerability assessments regarding how they differ.
Essay question-business environment : How does the changing business environment impact businesses, and what do businesses need to do in order to stay competitive in a changing, diverse business environment?
Calculate domestic consumers gain from removing the tariff : Calculate the domestic consumers' gain from removing the tariff.- Calculate The domestic producers' loss from removing the tariff.
Implementation of the recruiting and selection process : After reading the case study, evaluate the design and implementation of the recruiting and selection process (the case will describe a number of ineffective practices, a mismatch between job description and selection assessments, issues around adv..

Reviews

Write a Review

Econometrics Questions & Answers

  Discuss how the belief in the new economy

Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.

  Show the monopolists choice of a price and quantity

At the profit-maximizing quantity, what is the price elasticity of demand? If the spring were owned by a government that applied the marginal principle, what price would it charge?

  Why didnt the president reduce tuition for all students

provide a 50 percent tuition reduction for those graduating in the top 10 percent of their high school class, 33 percent reduction for those in the top 20 percent, and 25 percent reduction for those who finish in the top 30 percent.

  Compute the annual payment of the savings account

The parents of a young child decide to make equal annual payments into a savingsaccount, with the first payment being made on the child's fifth birthday and the last payment being made on the fifteenth birthday. Then a rotal of four withdrawals of..

  Compute the lump-sum amount

You borrowed $12,000 to buy a new car from a bank at an interest rate of 9% compounded monthly. This loan will be repaid in 48 equal monthly installments over four years. Immediately after the 20 th payment, you desire to pay the remainder of the ..

  Why an air handling system must be purchased

The best estimates for the first costs, yearly costs (O&M) and yearly benefits (Energy savings) are given below. However, uncertainty exists about the disposal cost and energy savings. The MARR is 5%; taxes and inflation can be ignored.

  Find profit per customer for weekdays and weekends

Economists estimate that on weekends the demand for your product is much higher than on the weekdays (monday-wednesday). On weekends. the inverse demand curve for a typical customer is P= 10 - 0.001Q; on weekdays, it is P=5- 0.01Q.

  Find the value of which he should deposit every month

John is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years.

  What is the effective cost of the loan for argosy

Argocy Associates a US based investment partnership, borrows €80.000.000 at a time when the exchange rate is $1,3460/€.The entire principal is to be repaid in three years, and interest is 6,250% per annum,paid annualy in euros.

  What is the marginal willingness to pay

Assume that the market equilibrium rent for two-bedroom apartments in Santa Monica, California is $1500 per month and the quantity is 40,000 units. The city council of Santa Monica establishes a rent control of $1200 per month on two-bedroom apart..

  Write a summary of the reports

Write a summary of the reports, key conclusions, and your opinion of them.

  Create a scatter plot of the same two variables

Is the theoretically predicted relationship of the real exchange rate and net exports visible in the figures?

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