Market demand and elasticities

Assignment Help HR Management
Reference no: EM131644981

Market Demand and Elasticities: 

Consider the demand for very large, gas hogging SUVs like Cadillac EscaladesÒ and Toyota Land CruisersÒ. Suppose that the demand for big SUVs is Qd = 500 - 3P + 3PSF - 2PRW , where P is the price of big SUVs (in thousands of dollars), PSF is the price of small SUVs like Subaru ForestersÒ (in thousands of dollars), and PRW is the price of the platinum-plated wheel rims cool people put on big SUVs like Escalades that keep rotating even when you come to a stop. Assume that supply is given by Qs = 100 + 7P. Assume PSF = 40 and PRW = 10.

1) What if the government wants to impose a tax on big SUVs because they get low miles per gallon, hog the road and are dangerous to other vehicles. Suppose the tax is equal to 10 (in thousands) per car. Model the tax as on producers, as a shift in the supply curve. Show the change in your graph and the new equilibrium P* and Q*. Does it matter if the tax is placed on consumers rather than producers of big SUVs? Prove your answer by algebra and in a graph.

2) How much does the price increase in (f) resulting from the tax of 10? Use the formula to verify your answer. What percentage of the tax is paid for by consumers in the form of a price increase? 

Reference no: EM131644981

Questions Cloud

Types of initiatives are expected in your area of practice : What types of initiatives are expected in your area of practice
Idea of the basic economic problem : What do you think would happen to our idea of the basic economic problem (want vs. need vs. price vs. limited resources) if we discovered a natural resource
Discuss about the training of police recruits : The team later found the suspected dealer at another location and arrested and interrogated him before reading the Miranda warnings.
High fixed costs but extremely low marginal cost : 2. One large geothermal plant that has high fixed costs but extremely low marginal cost
Market demand and elasticities : Consider the demand for very large, gas hogging SUVs like Cadillac EscaladesÒ and Toyota Land CruisersÒ. Suppose that the demand for big SUVs
Develop a categorical syllogism : Develop a categorical syllogism. Discuss the meaning of the terms and/or propositions with a goal of understanding the importance.
General public views of the presidential performance : Several organizations publish the results of presidential approval polls. Movements in these polls are seen as an indication of how the general public views.
Despite increases in computing power and network bandwidth : Despite increases in computing power and network bandwidth, many user interfaces are still largely text oriented, with a few icons and illustrations.
Sweeping health care reform bill : Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans.

Reviews

Write a Review

HR Management Questions & Answers

  Improve problem solving capabilities within organization

Types of teams as to their effectiveness that will improve problem solving capabilities within organizations.

  Influence tactics help in reducing organizations politics

Explain the different types of influence tactics that will be of a help “if adopted” in reducing the organizational politics.

  Report on citigroup''s hr service level agreement

Human Resources or Human Resource Management deals with HR Service Level Agreement. HR Service Level Agreement is an agreement made between the employer and the employee, which states that the employee would work under any client and sometimes any ti..

  A project report on hrm

Human Resource Management as the name suggests, it is a management discipline which deals with the human i.e. the workforce aspect of organizations. Need and practices of HRM are inevitable in present scenario of extreme competition where "Talent War..

  Hrp: recruitment and selection

Recruitment and Selection is the initial ladder of any Human Resource Planning process and contains an immense significance for any organisation.

  A project report on study of statutory complainces

Statutory compliance and its immense knowledge are crucial to be understood in an organization. It contains all the forms, procedures and acts applicable in a company.

  Operant conditioning and Reinforcement

Operant conditioning is a learning process where behaviour is controlled by its consequences. In this process an individual's behaviour can be modified through the use of positive or negative reinforcement.

  Effectiveness of training programs in achieving customers an

The main motive for conducting this research is to provide broad range of research of the literature and their reviews related to training and development and assisting the employees in providing customers satisfaction.

  A critical analysis of hr processes and practices in fedex c

FedEx is illustrious for its novel HR processes and practices that have greatly accounted for its success.

  Integrating culture and diversity in decision making

People in the organization are known as Google where they share common goals and have common vision.

  Impact of employee attrition on people management in organis

Talent management implies recognizing a person's inherent skills, traits, personality and offering him a matching job.

  Labour dissonance at maruti suzuki india limited: a case stu

This Case Study focuses on various issues related to Labour Unrest at Maruti Suzuki India Limited.

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