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Welfare Effects of a Per Unit Tax
Given the Qd = 1000 - p and Qs = 3p-120, suppose the government imposes a per unit tax of $64:
Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**).
Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.
Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus (i.e. the deadweight loss) from the market without the tax (see your answers in question #1).
Explicate which among the policies is most effective and least effective for this nation.
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
Describe briefly one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
There are two players 1 and 2. re are two cards: "High" and "Low". Player 1 chooses at random one card. Write a strategic form also find optimal strategy of player.
Without further use of Excel, illustrate what is the probability (in %) that a randomly selected orange will contain less than 4.2 ounces of juices?
Are these ever mentioned? Explain. Q3) How would you compare the events of September 11, 2001 to those reasons listed? Q4) What is the difference between a "bull market" and a "bear market"?
The long-run average-total-cost curve shows. Total fixed costs generally decline as output is increased. Average total costs tend to be U-shaped. As output increases, average variable costs converge to average total costs.
The expected annual net savings in operating costs will be $25,000 during the first year and $40,000 during the second year. If your interest rate is 10%, what would be the equivalent net savings per machine-hour?
Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling.
The higher the percentage of debentures, the greater the risk borne by each debenture, and thus the higher the required rate of return on the debentures.
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
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