Would this tax on soft drinks be considered efficient

Assignment Help Microeconomics
Reference no: EM131642898

Question: The following graph shows the effect of a tax imposed on soft drinks. Use this graph to answer the questions:

a. Which areas in the graph represent the excess burden (deadweight loss) of the tax?

b. Which areas represent the revenues collected by the government from the tax?

c. Would this tax on soft drinks be considered efficient? Briefly explain.

2290_3.png

Reference no: EM131642898

Questions Cloud

Explain why consumer surplus is a measure of net benefit : Consumer surplus is used as a measure of a consumer's net benefit from purchasing a good or service.
What is south korea trying to accomplish : What is South Korea trying to accomplish? What are the risks of South Korea carrying out a nuclear weapons test?
Globalization affect employee-employer relationships : How does globalization affect employee-employer relationships in the United States?
What is the form in which the data are reported : How are data analyzed? What is the form in which the data are reported?
Would this tax on soft drinks be considered efficient : The following graph shows the effect of a tax imposed on soft drinks. Use this graph to answer the questions.
How do election campaigns attempt to address it : What is the Gender Gap and what factors may explain its existence? How do election campaigns attempt to address it?
Multinational organization operate as a tightly integrated : Should a multinational organization operate as a tightly integrated, worldwide business system,
How your concept is rooted in the text by citing the play : Clearly and descriptively explain your production statement. Explain how your concept is rooted in the text by CITING the play.
Key risks in the supply chain of ford the automobile company : Highlight 3-5 key risks in the supply chain of Ford the automobile company. How would you mitigate these risks?

Reviews

Write a Review

Microeconomics Questions & Answers

  What does this say about the marginal return to labor

What does this say about the marginal return to labor

  Demand relation is a linear function of price and income

Demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Mississippi's demand for KBC microbrews.

  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.

  Define the rybczynski theorem

Start at the no-trade equilibrium point A on the Home PPF in Figure 4-2, panel (a). Suppose that through immigration, the amount of labor in Home grows.

  Why are barriers to entry essential for a monopoly to exist

Why are barriers to entry essential for a monopoly to exist? Which of the following is NOT an example of a barrier to entry for monopolists? To charge different prices to different individuals or groups of individuals is called: An industry in which ..

  Expected payment based on the futures exchange rate

A portfolio manager owns a bond worth £ 2,000,000 that will mature in one year. The pound is currently worth $ 1.65, and the one- year future price is $ 1.61. If the value of the pound were to fall, the portfolio manager would sustain a loss.

  How many people are in countrys labor force find the labor

labor market statisticstype of statistic number millionspopulation under the age of 16 16population over the age of 16

  Compute the expected value and the standard error for the

a random sample of size n 175 is taken from a population with population proportion p 0.71.calculate the expected

  The number of people employed

1. The economy of Snowland reported the following data: The labour force as 19.02 million; employment  as 17.69 million and the working age population as 27.98 million.

  Discuss how operating room total costs

Discuss how operating room total costs, average costs, and marginal costs might change following the adoption of fiber-optic digital imaging equipment.

  What are the particular problems associated with the firm

What does this graph tell us the nature of economies of scale in the beer brewing industry b. What are the particular problems associated with the firm represented by the SATC curve shown in the graph Does it represent a firm that would be able to..

  According to the life-cycle hypothesis

People are likely to save the most during what part of the life cycle, according to the life-cycle hypothesis? Planned investment spending depends on all of the following EXCEPT:

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