What is the reduction in total costs due to the tax

Assignment Help Business Economics

Reference no: EM131094847

The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has placed a tax of $4 per two-liter bottle that is added to the consumer's bill at the checkout.

A. what is the reduction in total costs due to the tax?

B. what is the deadweight loss of this tax?

Reference no: EM131094847

Questions Cloud

Democratic or the republican candidates : As your readings for this week point out, the President is not elected by a direct vote of the people, but rather by the Electoral College. Some argue that this discourages voters from voting if they live in a state where the majority of voters co..

What is the equilibrium price and quantity of milk : The market marginal benefit for milk (in gallons) is given by MB = 132 - 8/3925 Q. There are two firms in the market that produce milk. The first firm’s marginal cost curve is given by MC1 = .0003125Q, while the second firm’s marginal cost curve is M..

Should gina contest the price increase : Bhagat has announced a $3 price increase for its machine parts. This figure represents the projected $3 increase in labor costs due to its new union contract. It is Gina's responsibility to evaluate this announcement.

What do see as biggest financial issues of your organization : Review your current budget. Taking this information into account, what are some strategies you would use to identify resources to focus on improving efficiency and meeting customer expectations during this time?

What is the reduction in total costs due to the tax : The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has placed a tax of $4 per two-liter bottle that is added to the consumer's bi..

Is this consistent with the standard theory of consumer : The prices of consumer goods in Los Angeles and Miami are different: some things are cheaper in Miami, while others are cheaper in Los Angeles. Is this consistent with the standard theory of consumer behavior? Prove any claims that you make

Major grocery store as a check-out clerk : Bill has just started working for a major grocery store as a check-out clerk. Mason is training him in the duties of the new position. At the end of the first day, Bill and Mason are counting the cash in their drawer and reconciling cash receipts ..

Calculate the annual worth for the system : Lockheed Martin is increasing its booster thrust power in order to win more satellite launch contracts from European companies interested in new global communications markets. A piece of earth-based tracking equipment is expected to require an invest..

Accounting cash flow case description : Title accounting cash flow case Description This case has been divided into two parts. We already did the first part, which requires you to do balance sheet, income statement and stockholder's equity.

User Account

All Pages