The tax revenue and the dead weight loss

Assignment Help Microeconomics
Reference no: EM13338108

The inverse demand p(q) for bowling balls is given by p = 100 - 2q where p is the price of bowling balls and q is the consumption of bowling balls. One store sells bowling balls, the supply is given by p = 50 + 5q.
(a) What is the total quantity of bowling balls consumed and what is the price per unit. What is the consumer surplus and the producer surplus.
(b) The government set a tax of 2$ on bowling balls, what is the total quantity of bowling balls consumed, the price paid by consumer and the price received by the store. What
is the consumer surplus, the producer surplus, the tax revenue and the dead weight loss.
What is the share of the tax paid by the consumer and the one paid by the producer.

Reference no: EM13338108

Questions Cloud

Distribution of the possible values : Perform the check regarding the sample size that confirms the sampling distribution of the possible values for will be approximately normally distributed.
A paper mill discharges gunk that causes damage : A paper mill discharges gunk that causes damage of $200 to the fishermen's business. The pollution damage can be eliminated in one of two ways: the mill can install a filter at cost $300 or fishermen can install a water treatment plant at cost..
What is the average product of capital : Suppose the production function is given by Q = 5K + 3L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
What is the probability that the sample mean : What is the probability that the sample mean will be more than 9.0%
The tax revenue and the dead weight loss : The tax revenue and the dead weight loss.
What is the relationship between budget deficits : What is the relationship between budget deficits, net exports and savings nexus. Explain why capital flows liberalizations precondition for the "emergence" of emerging markets?
An unknown monoprotic acid : You have 0.3991 g of an unknown monoprotic acid, HA, which reacts with NaOH according to the balanced equation HA + NaOH ® NaA + H2O
The photolectron spectrum of the element gallium ga : How many electrons should we expect to see associated with the lowest energy peak in the photolectron spectrum of the element Gallium (Ga)?
Calculate the mass of a single particle of na2co3 : Calculate the mass of a single particle of Na2CO3 and the number of particles of Na2CO3 in the mixture. Do the same for K2CO3.

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the profit maximizing output

)Determine the range of prices for which the firm earns a profit. 3) Calculate the profit maximizing output and the resulting profit when price is $101.

  What happens to the indifference curves

What happens to the indifference curves when a household's income is reduced and how does a budget constraint explain consumer choices when used in conjunction with indifference curves?

  What happens to the scale of firms in the long run

What happens to the scale of firms in the long run What motivates firms to choose the scale of operation that they do  How does the market adjust in the long run when firms are earning short-run economic profits

  Find the consumer price index (cpi)

Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Go..

  Current economic regulations and processes

Explain how a item might evolve from one market structure to another and what that means as to the value, competition and number for companies producing that product.

  How will international trade influence people production

What is the law of comparative advantage? According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation produces?

  How demand and supply determines prices

how demand and supply determines prices in "contemporary art market" and the effects on speculation

  How to make use of critical elasticity of demand analysis

Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..

  How would the job be categorized

Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U= NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the fa..

  Computing incremental profit

Calculate the incremental profit that south park would earn by customizing its instruments and marketing them directly to end users.

  Two centuries ago there were more buffalo than cattle

Two centuries ago there were more buffalo than cattle in the United States. Even though millions of cattle are killed for beef consumption each year, the cattle population continues to grow while the buffalo are virtually extinct. Why?

  Find equivalent present worth of future cash flow generated

A chemical production facility that is under construction is expected to be in full commercial operation one year from now. Once full operation, the facility will generate $85,000 cash profit daily over the plants service life of 8 years.

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