User Account

All Pages

Downward-sloping demand curve-upward-sloping supply curve

Assignment Help Business Economics
Reference no: EM131395401

The market for pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve.

  • Draw the competitive market equilibrium. Label the price, quantity, consumer surplus, and producer surplus. Is there any deadweight loss? Explain.
  • Suppose that the government forces each pizzeria to pay a $1 tax on each pizza sold. Illustrate the effect of this tax on the pizza market, being sure to label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?
  • If the tax were removed, pizza eaters and sellers would be better off, but the government would lose tax revenue. Suppose that consumers and producers voluntarily transferred some of their gains to the government. Could all parties (including the government) be better off than they were with a tax? Explain using the labeled areas in your graph.

Consider the market for rubber bands.

  • If this market has very elastic supply and very inelastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Use the tools of consumer surplus and producer surplus in your answer.
  • If this market has very inelastic supply and very elastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Contrast your answer with your answer to part (a).

Reference no: EM131395401

Questions Cloud

In reference to game theory in economics : In reference to game theory in Economics; state the meaning of the term `Nah Equilibrium'
Construct class named car containing these four data member : Include the class written for Exercise 3a in a working C++ program that creates two Car objects; the second object should be assigned the values of the first object.
Understanding of meaning of the word scapegoat : What is your current understanding of meaning of the word "scapegoat"? Have you always understood the meaning of the word? Describe any early impressions you had at a much younger age as to what a "scapegoat" was. Give an example of a scapegoat
Construct argument patterns - teenage drunk driving : If a statement is redundant or plays no role in the argument, do not include it in the pattern.- The argument has been made that to cut down on teenage drunk driving we should increase the federal excise tax on beer.
Downward-sloping demand curve-upward-sloping supply curve : The market for pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve.
Construct argument patterns - flesh food is not a necessity : If a statement is redundant or plays no role in the argument, do not include it in the pattern.- Flesh food is not a necessity in the human diet, as nutritionally adequate alternatives are readily available.
How much of each grade of gas to supply to a gas station : Modify the class written for Exercise 9a to include the grade of gas. Assume there are three grades of gas: 87 octane, 93 octane, and 97 octane.
Ability to generalize a causal relationship : Which combination of validity types is most related to our ability to generalize a causal relationship? Explain.
Real costs of college education : Assuming that the real costs of college education are lower now than at the turn of the century and that these costs are lower for persons of higher ability, construct an explanation for why banks might have raised their hiring standards"

Reviews

Write a Review

Business Economics Questions & Answers

  Regional shopping mall-report micro and macro-economic facts

Picture a big shopping mall, but vacant, a property (Super Regional shopping mall) of 154,000 square feet has a market value of $ 14,000,000.00 ($90.58/sf). the property is located in Riverside in the state of California. But it is not so simple, thr..

  What happens to the equilibrium interest rate

Suppose that the money demand function is M P d = 1000 100r where r is the interest rate in percent. The money supply M is 1000 and the price level P is 2.  Graph the supply and demand for real money balances. Assume the price level is fixed. What ha..

  Population is composed of four groups of equal size

A population is composed of four groups of equal size, called quartiles. The bottom quartile owns 5% of total wealth, the second quartile owns 10% of total wealth, the third quartile owns 20% of total wealth and the last quartile owns what is left. W..

  Horizontal-vertical-upward sloping-downward sloping

In the long run, some firms will respond by, The new equilibrium price and quanity suggest that the shape of the long-run supply curve in this industry is (horizontal, vertical, upward sloping, downward sloping)

  About the rate of labor productivity growth

What can you infer from this data about the rate of labor productivity growth in the US economy during this period? If possible give a numerical answer, but in any case explain your answer in a few sentences

  Cross-price elasticity of demand between products

You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..

  Adjustments to hypothesis testing and evaluation

How does the PRF provide a framework for interim adjustments to hypothesis testing and evaluation?

  Qconsider total cost and total revenue given in the table

q.consider total cost and total revenue given in the table belowquantity 0 1 2 3 4 5 6 7total cost 8 9 10 11 13 19 27

  What are their implications for society

The content of the paper will respond to the topic by including a summary of chapter 9 from History of economic thought (Acritical Perspective) by E. K. Hunt and Mark Lautzenheiser. Karl Marx argued that all value in goods and services (commodities) ..

  Illustrate what would happen to the total employment

Illustrate what would happen to the total employment, the size of the labor force, and the unemployment rate? Show the results graphically.

  Social regulation is undertaken with intention of improving

Social regulation is undertaken with the intention of improving the quality of life. The agencies most people are familiar with include: the Food & Drug Administration (FDA); the Equal Employment Opportunity Commission (EEOC); the Occupational Safety..

  Velocity of money and discuss major determinants of velocity

Define velocity of money and discuss the major determinants of velocity. Assume GDP is currently $14,000 billion per year and the quantity of money is $1,750 billion. What is the velocity of money? The nation collectively holds enough money to financ..

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