1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P=6+0.2Q P=27 -0.1 Q a. b. C. d. e. What is the equilibrium quantity for t-shirt Number What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 4 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? Number Given the chemical waste in part c., what is the socially optimal p Number What tax policy could the government use to assure that you sell the socially optimal number of t-shirts? for List Tax t-shirts equal to 4 dollars Subsidize t-shirts equal to 4 dollars Tax t-shirts more than 4 dollars Subsidize t-shirts more than 4 dollars
1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P=6+0.2Q P=27 -0.1 Q a. b. C. d. e. What is the equilibrium quantity for t-shirt Number What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 4 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? Number Given the chemical waste in part c., what is the socially optimal p Number What tax policy could the government use to assure that you sell the socially optimal number of t-shirts? for List Tax t-shirts equal to 4 dollars Subsidize t-shirts equal to 4 dollars Tax t-shirts more than 4 dollars Subsidize t-shirts more than 4 dollars
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1.
a.
b
C.
d.
e.
Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below.
P=6+0.2 Q
P=270.1 Q
What is the equilibrium quantity for t-shirt
Number
What is the equilibrium price for t-shirts?
Number
If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 4 worth of damage to the environment per
shirt, what is the socially optimal number of t-shirts for you to sell?
Number
Given the chemical waste in part c., what is the socially optimal p
Number
What tax policy could the government use to assure that you sell the socially optimal number of t-shirts?
for List
Tax t-shirts equal to 4 dollars
Subsidize t-shirts equal to 4 dollars
Tax t-shirts more than 4 dollars
Subsidize t-shirts more than 4 dollars
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