Estimate before-tax charcoal price

Assignment Help Macroeconomics
Reference no: EM1312381

Yesterday you were unexpectedly given a free ticket to a Def Zeppelin concert scheduled for April I. The price printed on the ticket is $75, but the most you could sell it for is only $50. Today you discover that U-Who will be giving a concert that same evening. Tickets for the U-Who concert are still available at $75. Had you known before receiving your Zeppelin ticket yesterday that U-Who would be coming, you definitely would have bought a ticket to see them, not Def Zeppelin. True or false: From what we are told of your preferences, it follows that if you are a rational utility maximize, you should attend the U-Who concert. Explain.

Because of concerns that barbecuing meat using charcoal may cause cancer, the government decides to impose a 100 percent tax at the retail level on charcoal briquets. Suppose the daily demand for charcoal was P = 120 - 2Q and the supply was P = 30 + Q, where Pis in dollars and Q is the number of 10-kg bags of charcoal sold daily.

a) Give the before-tax charcoal price and quantity exchanged.

b) Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.

c) How is the tax divided among sellers and buyers?

Reference no: EM1312381

Questions Cloud

Understanding basics of epidemiology : What kind of measure is useful in investigating the epidemics? Enlist the steps you would carry out for detecting or investigating an outbreak.
Contingency table and probability : What is the probability that the cereal would be high calorie? In other words, what is P (high calorie)?
Compute general mills'' accounts receivable turnover ratio : Compute General Mills' accounts receivable turnover ratio for 2004. (Assume that all sales are on credit. and determine the average collection period, in days, for an account receivable? Explain your answer.
Computing the firm''s equity multiplier at given a debt ratio : Computing the firm's equity multiplier at given a debt ratio and Dreisen Traders has total debt of $1,233,837 and total assets of $2,178,990.
Estimate before-tax charcoal price : Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.
Genetic and epigenetic changes of cancer. : Select a specific gene and a specific alteration. Explain the effects of the modifications and why it might contribute to the cancer.
Probability that cereal would be of high fiber : What is the probability that the cereal would be high fiber? In other words, what is P (high fiber)?
Compute the firm''s equity multiplier at given a debt ratio : Compute the firm's equity multiplier at given a debt ratio
Estimating median and first and third quartiles : Then use ogive to estimate median and first and third quartiles. Also utilize it to reply following question: What percent of 60 mutual fund loads are less than 75.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Compute grocery stores weekly demand forecast

Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?

  Evaluation of profitable investment

If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.

  Market imperfection associated with negative externalities

Essay on Market imperfection associated with negative externalities.

  Short run and long run profit maximizing price

Finding the short run and long run profit maximizing price - quantity and number of firms in industry.

  Economically interpret the regression results

Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.

  Describing the problems of bank of canada

What are the two problems facing the Bank of Canada in trying to control the money supply precisely?

  Cournot nash equilibrium for two airline firms

Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..

  Graph of weekly budget line

Tom earns $15 per hour for up to 40 hours of work each week. he is paid $30 per hour for every hour in excess of 40.

  Compute the quantity demand by each consumer

Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.

  Specific government policies and technologies

Field discusses the key threats to sustainable management of forests and agricultural resources.  First summarize these threats.  Then,

  Contractionary and expansionary monetary policy

What is the difference between contractionary and expansionary monetary policy?

  Describing the three theories

Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.

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