User Account

All Pages

What is the deadweight loss from the tax

Assignment Help Macroeconomics
Reference no: EM131709997

Question - The question reads: In a perfectly competitive market for coal, consumers' benefit function from consuming tons of coal Q, is given by: B(Q) = -0.25(Q2)+ 240Q

In addition, the coal producer has a function given by: C(Q)=0.1(Q2)+2Q.

Suppose the government imposes an ad valorem tax on coal producers of 7% of the sale price.

a. What is the competititive equilibrium in the absence of the tax?

b. What is the competitive equilibrium with the ad valorem tax?

c. What is the change in consumer surplus as a result of the tax?

d. What is the change in producer surplus as a result of tax?

e. How much revenue is generated by the tax?

f. What is the deadweight loss from the tax?

g. What is the change in total welfare due to the tax?

If someone could help me get started on this problem, that would be great. Thanks!

Reference no: EM131709997

Questions Cloud

Discuss about the college retirement equity fund : The May 1, 2007, College Retirement Equity Fund (CREF) prospectus lists the following sample returns on $1 invested in two of the fund's accounts, per year.
What are the two features that make a liability current : Peggy is confused as to what constitutes a current liability. What are the two features that make a liability "current"? What is depreciation and salvage value?
Array of services including inpatient services : This healthcare organization provides a wide array of services including inpatient services, transitional care services, and outpatient treatment and testing.
Define the paint is chipping and he finds the puke pink : While Jane is out of town on vacation, John paints Jane's house because the paint is chipping and he finds the puke pink
What is the deadweight loss from the tax : Suppose the government imposes an ad valorem tax on coal producers of 7% of the sale price. What is the deadweight loss from the tax
Explain early implementation of standard adversely affect : When the financial vice president determines that early implementation of the standard will adversely affect the reported net income for the year.
Test to determine which investment mode is better : An article in Money compares investment in an income annuity, offered by insurance companies, and a mix of low-cost mutual funds.
Was the cause of their ptsd clearly identifiable : Was the cause of their PTSD clearly identifiable? To what extent was any treatment described identifiable as an evidence-based best practice?
Define use of technology by law enforcement : Should there be limits on the use of this technology by law enforcement

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd