A consumer who only consumes x and y has tastes that can be described by the utility function u(x,y)=(x^0.8)(y^(1-0.8)) and income of 1,254. The price of good x is 5.7 and the price of good y, a composite good, is 1. When a distortionary tax on good x increases its price to 9.5, the deadweight loss is ___. (Round your answer to two decimal points.)

Q: If this figure depicts the market for product X, and the demand for product X changed from D1 to D2…

A: Cross Price Elasticity of demand for product X = \frac{%\ change \ of \ demand \ for \ good \ X}{% \…

Q: If Philip's utility function is U=4 (41)05+42 what are his demand functions for the two goods? Let…

A:

Q: According to the article, after the city of Berkeley imposed a $0.01 per ounce tax on…

A: This article discusses the impact of a sugar-sweetened beverage (SSB) tax on low-income residents in…

Q: Lea's utility function is U=In(x) + 0.8 y where x denotes her consumption of good X and y denotes…

A: Given,  Utility Function: U=ln(x)+0.8y Per Unit Tax on Good X = $2 Price of Good X = $7  Price of…

Q: The demand equation for a good is given as Q = 200 - 4P + 6M + 2P. P: The price of the good M: The…

A: Given, the demand function for a good: Q =200-4P+6M+2PS Value of Q: Q = 200-4*80+6*60+2*100Q…

Q: Qd=60-40P+2I-30Py where: Qd is the quantity demanded of Good X P is the price of Good X I is…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: Many studies on rats and mice have established that charred meat grilled over hot coals causes…

A: a. Before-tax price:Demand equation: P = 100 - frac{Q}{10}Supply equation: P = 1 + frac{Q}{100}At…

Q: the price of a complementary good rises, the equilibrium price of good X will __________  and…

A: Equilibrium is achieved where Qs=Qd

Q: The Calculus of Equilibrium and Elasticities Suppose that the quantity supplied of TV stands is…

A: the elasticity of demand measures the quantitative relationship between the price and quantity…

Q: Stuart's utility function for goods X and Y is represented as U(X,Y)=X0.8Y0.2. Assume that his…

A: we have Utility function=U(X,Y)=X0.8Y0.2     and Budget =$100=20x + 10y marginal utility of good…

Q: Consider the function y = 2x +x, for which dx = 4x +1. Compute the elasticity of y with respect to x…

A:

Q: Suppose the own-price elasticity of demand for good X is |ED |= .8 and the own-price elasticity of…

A: In most marketplaces, most buyers are price sensitive, and the idea is that if a product or service…

Q: The demand for good X is given by Qx = 553 - 9Px + 0.03M. The price of the good is currently $20 and…

A: Income Elasticity of Demand: Income elasticity of demand measures the responsivness of the quantity…

Q: QUESTION 11 When demand is elastic, an increase in price causes the seller's total revenue to: O…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The demand equation for school lunches is p=10- x/10, where c is the number of lunches purchases and…

A: Demand elasticity is a significant variant on the concept of demand. Elastic, inelastic, and unitary…

Q: Assume that the supply of gasoline is relatively inelastic and the supply of wheat is relatively…

A: When the government imposes the tax on a good, it causes a leftward shift of the supply curve and…

Q: The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200-9.5p+16.2pp +0.2Y, where Q…

A: Given the demand function of coconut oil :Q=1200-9.5p+16.2Pp+0.2Y Given the values, p=45Pp=31Q=1322…

Q: Lea's utility function is U =0.7 ln( x ) + y     where x denotes her consumption of good X and y…

A: U =0.7 ln( x ) + y   Px = 9 Py = 13 M = 389

Q: Suppose a consumer’s preferences over two goods x_1 and x_2 are given by u = Square root (X_1,X_2).…

A: Consumer tastes are subjective rankings and choices that people make about what goods or services to…

Q: The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 - 9.5p + 16.2 pp + 0.2Y,…

A: The demand function is given as The value of p is 45 c per pound.The value of Pp is 31 c per…

Q: Assume the demand function for good X can be written as: QX = 30 - 3PX + 2PY + 0.2I Where PX…

A: In economics, a demand curve is a graph depicting the relationship between the price of a certain…

Q: The coconut oil demand function (Bushena and Perloff, 1991) is Q=1,200-9.5p+16.2pp+0.2Y, where Q is…

A: Demand function: Q=1200-9.5p+16.2pp+0.2Y P value=55 PP value=29 Q=1375 Please find the image…

Q: smoking to cancer plans to raise the excise tax in cigarettes so the price rises by 10 percent. The…

A: Price elasticity of demand is in turn being defined as the % change in quantity which is being…

Q: Consider the demand curve Q = 100 - 50P. a. Draw the demand curve and indicate which portion of the…

A: Demand is the desire backed by a willingness to pay and the ability to pay by an individual. The…