2. Highlight for the answer: for each (a- d) statement as Positive/Normative. a. The price of gasoline came down sharply during the second half of 2006. Positive / Normative b. If the government were to set a maximum legal price on gasoline, then there would be a shortage of gasoline. Positive/Normative C. Income taxes should be reduced. Positive/Normative d. The federal government obtains much of its revenue from income taxes. Positive/Normative

2. Highlight for the answer: for each (a- d) statement as Positive/Normative. a. The price of gasoline came down sharply during the second half of 2006. Positive / Normative b. If the government were to set a maximum legal price on gasoline, then there would be a shortage of gasoline. Positive/Normative C. Income taxes should be reduced. Positive/Normative d. The federal government obtains much of its revenue from income taxes. Positive/Normative

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A controversial issue in managing climate change is the effect of taxes on gasoline. Higher taxes would reduce the after-tax price received by gasoline producers. The price elasticity of the supply of gasoline has been estimated to be 2.0.a. Explain why the price elasticity of supply is positive.b. Suppose that a tax on gasoline reduces the after-tax price of gasoline by 5%. By how much would suppliers reduce gasoline production?c. Compare the effect of the tax on gasoline in the short vis-à-vis long run.
Referring to Figure 8, assume the government does not fix the price of gasoline. What would happen to the price and quantity if demand also decreased instead of staying the same? a. The price would increase above P2, and the quantity would increase above Q2. b. The price would increase above P2, and the quantity would decrease below Q2. c. The price would decrease below P2, and the quantity would decrease below Q2. d. The price would decrease below P2, and the quantity would increase above Q2.
1. What sort of product is alcohol in economic terms if the government wants to restrict consumption of it? 2. Analyze the social costs of alcohol 3. Analyze the factors that would determine the impact of a price increase on the consumption of alcohol. Is introducing a minimum price a better way of reducing consumption than trying to change peoples’ attitudes?
Please solve this
1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?
Which of the following statements about corrective taxes is generally NOT true? a. They raise government revenue. b. They reduce the quantity sold in a market. c. They increase what consumers pay for the good. d. They cause deadweight losses.
When a market is in equilibrium, a. There are still shortages, especially for fossil fuels. b. The quantity demanded equals the quantity supplied. c. All government regulations have been repealed. d. There are still some surpluses because sellers can be stubborn. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
a. Does the market provide an efficient amount of effort: i. No, too little effort. ii. None of these is correct. iii. No, too much effort. iv. Yes b. The teacher of the course is considering to implement a tax-cum-subsidy policy in order to enhance effort in the course. Suppose he seeks advice from you. He proposes to subsidize effort at the rates, meaning that putting G, units of time into working on the problem sets will feel less, concretely, only like putting (1-s)G, units of time. In order to subsidize effort, he will tax students' time at the rate t, so the total available time will become(1-1)W₁. What tax-subsidy combination would you propose in order to implement the social optimum while keeping budget balance? i. t=1/3 and s=1/2 ii. t=1/4 and s=1/3 iii. t=1/3 and s=1/3 iv. t=1/4 and s=1/2
(27) Refer to the figure below. If the government sets a price ceiling at $10, there would be a(n): Select one: a. shortage of 24 units. b. excess supply of 32 units. c. excess supply of 80 units. (28) If demand increases and supply remains constant, what happens to the market equilibrium? Select one: a. Quantity rises and price falls. b. Quantity and price both rise. c. Quantity and price both fall.
(3) A recent study found that the demand-and-supply schedules for Frisbees are as follows: a. What are the equilibrium price and quantity of Frisbees? (2)b. Frisbee manufacturers persuade the government that Frisbee production improvesscientists’ understanding of aerodynamics and thus is important for nationalsecurity. A concerned Diet members votes to impose a price floor $2 above theequilibrium price. What is the new market price? How many Frisbees are sold? (4)c. University students march on Tokyo and demand a reduction in the price ofFrisbees. An even more concerned Diet members votes to repeal the price floorand impose a price ceiling $1 below the former price floor. What is the newmarket price? How many Frisbees are sold? Price per Frisbee Quantity Demanded Quantity Supplied $11 1 million Frisbees 15 million Frisbees 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1
Lesson 10 Question 12
1. Using demand and supply analysis, explain the effect on the equilibrium price and quantity of a good or service if the number of buyers in the market for this good or service increases. 2. Discuss the type of price control that a government would implement if it wishes to impose a national minimum wage. Include in your answer the economic effects of such a price control. Motivate your answer with the aid of a diagram.