User Account

All Pages

What was the equilibrium quantity

Assignment Help Macroeconomics
Reference no: EM131281718

The demand curve for two liter bottles of soda is given by QD-1000P, and the supply curve is given by QS. In an effort to reduce soda consumption, the government has placed a tax of .50 per two liter bottle that is added to the consumer's bill at the checkout.

a. Before the tax was imposed, what was the equilibrium quantity?

b. After the tax is imposed, what is the equilibrium quantity?

c. How much revenue will the government collect from this tax?

d. What is the reduction in total benefits due to this tax?

e. What is the reduction in total costs due to the tax?

f. What is the deadweight loss of this tax?

Reference no: EM131281718

Questions Cloud

What is the total cost to firm : Two suppliers have been contracted by a government agency to provide a total of 100 hours of training services to help agency employees learn how to use a new computer system. The marginal cost curve of firm 1 is MC1=100+.2Q1, while the marginal c..
Discuss why all of the energy cannot be harnessed : Estimate the amount of radiation from the sun that falls on land, and then estimate the ratio of energy currently used worldwide and the amount of terrestrial solar energy that is available. Then, discuss why all of the energy cannot be harnessed.
Perfectly competitive product market : A company sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market. Assume the market wage for workers is $ 150 per day.
How the unit is insulated and how it is internally vented : You may also want to consider how the unit is insulated and how it is internally vented. Although the cost of the oven is important, energy consumption, reliability and speed of cooking are the primary concerns for this design.
What was the equilibrium quantity : The demand curve for two liter bottles of soda is given by QD-1000P, and the supply curve is given by QS. In an effort to reduce soda consumption, the government has placed a tax of .50 per two liter bottle that is added to the consumer's bill at..
Evaluate new insulation concepts : Start with a baseline design for a commercially available hot-water heater. Investigate commercially available insulation systems, determine if any could provide these advantages, and quantify the cost and heat-transfer performance. You may also w..
Discuss the implication of the filament emissivity : Discuss the implication of the filament emissivity and the emissivity of the surface under analysis and how this will affect the accuracy of the measurement. Suggest methods that could be used to automate the device so that it could essentially be..
What was net capital spending for 2015 : Bowyer Driving School's 2014 balance sheet showed net fixed assets of $3.6 million, and the 2015 balance sheet showed net fixed assets of $4 million. The company's 2015 income statement showed a depreciation expense of $400,000.
Compute the firm profit for the output levels : a.) Compute the firm's profit for the output levels of (Q=2, 8, 14) b.) Drive an expression for the marginal profit. c.) Compute marginal profit at Q=2, 8, 14. d.) Confirm that profit is maximized at Q=8, and not Q=2

Reviews

Write a Review

Macroeconomics Questions & Answers

  Suppose that the inverse demand equation

Suppose that the inverse demand equation isp =100minus2Q and the supply equation isp =2Q.If the price is controlled at $35,this is a price ceiling. In this market, there will be a shortageof 10units (enter your response as a real number rounded to..

  Targeted weighted average cost of capital

Central Systems, Inc. desires a weighted average cost of capital of 7 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 10 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted a..

  Which of the economic principle best describes the situation

Which of the economic principles best describes this situation? Explains how increased spending for U.S. home and condo construction is likely to affect the performance of the economies of these South American countries.

  Discuss the key macro risks for the coming five to ten years

Pick a sector that you know well and identify and discuss the key macro risks for the coming five to ten years.

  Worker production function for the united states

What would happen to the per worker production function for the United States economy if the US decided to double in support of universities research?

  Labour force participation rate and unemployment rate

The BLS estimates that in 2002, the number of working-age adults was 211.9 million, labour force was 141.8 million, and the total number of employed was 135.1 million.  Calculate the following:

  Average cost is equal

A monopolist produces and sells 400 units at a price of $40 per unit. The monopolist's marginal cost is equal to $15 and average cost is equal to $23. The monopolist's profit is?

  Illustrate what would be effect on the equilibrium market

In what direction would the shift in labor supply and demand go. Illustrate what would be its effect on the equilibrium of the labor market.

  Explain changes in productivity due to expansion

Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.

  Determining efficient level of labour

A medium sized bakery has just opened in Slovakia. A loaf of bread is currently selling for fourteen koruna over and above the cost of intermediate goods

  Illustrate what are the major macroeconomic goals

Illustrate what are the major macroeconomic goals of all societies.

  Algorithm to differentiate between an integer

Write an algorithm to differentiate between an integer and an alphabet entered while playing a game.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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