8. The government of OZLand announces that on 1 July 2008 it will introduce a new tax on digital TVs. The announcement is made on 1 January 2008. It is known that the effect of the tax will be to increase the price of digital TVs after 1 July 2008. Prior to 1 July 2008 it would be expected that the effect of buyers knowing that the tax will be introduced would be to: a) Increase the equilibrium price of digital TVs b) Decrease demand for digital TVs c) Decrease the equilibrium quantity traded of digital TVs d) Be zero since the tax has not been introduced yet e) Both (a) and (c)

8. The government of OZLand announces that on 1 July 2008 it will introduce a new tax on digital TVs. The announcement is made on 1 January 2008. It is known that the effect of the tax will be to increase the price of digital TVs after 1 July 2008. Prior to 1 July 2008 it would be expected that the effect of buyers knowing that the tax will be introduced would be to: a) Increase the equilibrium price of digital TVs b) Decrease demand for digital TVs c) Decrease the equilibrium quantity traded of digital TVs d) Be zero since the tax has not been introduced yet e) Both (a) and (c)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Economists in Champaign have been studying the local market for pizza. The market is described in the graph below: What is the price elasticity of demand(in absolute value) when the price changes from $7 to $5?(Round your answer to include 2 decimal places.)
Which of the following statements best illustrates the concept of derived demand? An increase in the price of gasoline leads to an increase in the demand for small cars. 111 An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories. O An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.
Use the graph to answer the question that follows. What is the price elasticity of demand when price increases from $2 to $4? A-0.2 B-0.5 C-2 D-3 E-5
USE TABLE #1: For the market for electric automobiles, the equilibrium price is $ ________________ and the equilibrium quantity is___________ . (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).
N7 Which of the following statements best illustrates the concept of derived demand? A. When the price the of gasoline goes up, the demand for motor oil will decline? B. As income goes up, the demand for farm products will increase by a smaller relative amount. C. An increase in the demand for cashmere sweaters and scarfs will cause an increase in the demand for cashmere to increase. D. A decline in the price of margarine will reduce the demand for butter
51 Quantity Price Demanded i of $40 220 $60 180 The table above shows the change in quantity demanded when the price of a good increases from $40 to $60. Using the mid-point formula, we can calculate the price elasticity of demand for this good to be: Select one: а. 0.25 b. 0.50 C. 1.25 d. 2.00
A publisher has established the supply equation of one of their textbooks to be p =q² and is show in blue on the graph. They also found the demand equation to be p = -9² +20 and is shown in red. Where p is in tens of dollars and q is the quantity in hundreds of textbooks. 20 Find the equilibrium price. $ p Find the equilibrium quantity. 16- Find the amount demanded when the price is $1800. 12- Find the amount supplied when the price is $20. Quantity 12
Suppose the price elasticity of demand for cigarettes is -0.7 and that the government can essentially set the price of cigarettes by altering the tax rate. If the government wishes to reduce the quantity of cigarettes demanded by 20 percent, how much must it raise the price of cigarettes? The government, to achieve its goal, must raise the price of cigarettes by percent. (Enter your response rounded to two decimal places)
n Question 6 Ann wants to rent an apartment and she finds that apartments in her town are renting at a price lower than she is willing to pay. However, she finds it very difficult to find an apartment to rent. Finally, after six months of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. The best way to describe Ann's experience is that she has just experienced the effects of an inelastic demand apartments Obad luck with no market explanation Ⓒa price ceiling an elastic demand for apartments a price floor Show Transcribed Text Question 4 3 C Jaime and Peter are roommates and they are trying to decide how to divide window washing and shirt ironing tasks that they need done today, in their apartment. Suppose Jaime can wash three windows per hour or she can iron six shirts per hour. Peter can wash two windows per hour or he can iron five shirts per hour. Considering only this information, it is most efficient for Jaime to she has because…
What happens to the equilibrium price and quantity of coffee when there is a leftward shift of the supply curve for tea? Explain. Explain why when the demand curve for a good is relatively elastic, a one percent increase in the price of the good will decrease total consumer expenditures on that good.