c. Compared to the short-run effect of an increase in the excise tax on gasoline, the long-run effect of an increase in the excise tax has a demanded of gasoline; it reduces consumption of gasoline by a tax revenue for the federal government. amount, and it generates a A. larger; smaller; smaller OB. smaller, larger; smaller OC. smaller, smaller, larger OD. larger; larger, smaller effect on the quantity

c. Compared to the short-run effect of an increase in the excise tax on gasoline, the long-run effect of an increase in the excise tax has a demanded of gasoline; it reduces consumption of gasoline by a tax revenue for the federal government. amount, and it generates a A. larger; smaller; smaller OB. smaller, larger; smaller OC. smaller, smaller, larger OD. larger; larger, smaller effect on the quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The market supply and demand for a product are shown in the diagram below. Now supose the government imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to the government? Explain. (ii) Will producer surplus increase, decrease, or stay the same? (iii) Will total surplus increase, decrease, or stay the same? Explain.
The equilibrium price of a good is $30. Supply of this good is more elastic than demand. 5uppase the government introduces a tax on the good. in this case, the price receved by producers is $24, and the price paid by consumers is 1.6 times more.Calculate the tax cost per good for the group bearing most of the tax burden if necessary, round any intermediate calculations and your final answer to two decimal places. $______
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8. A Tax on Sellers (ID: 075.06 MANK09) Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift Oa. demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. Ob. supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially sweetened beverages. Oc. demand, raising both the equilibrium price and quantity in the market for artificially sweetened beverages. Od. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially sweetened beverages.
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If buyers pay more of a tax than do the sellers اختر أحد الخيارات a. demand is more elastic than supply O .b. supply is more elastic than demand O C. None of the above answers is correct O .d. the equilibrium price paid by buyers rises by less than half the amount of the tax „e. the amount of tax revenue collected by the government is almost zero
4. NSW government provides 200$ of active kids vouchers to an average family in NSW. 50% of such vouchers are unused and expire. Quarter million of such vouchers were downloaded by families. Assuming income elasticity of +0.75 calculate increase in spending through such vouchers.
The quantity demanded of salt decreases when the price of pepper increases. This is an example of * own-price elasticity. supply elasticity. income elasticity. O rubber band elasticity. cross-price elasticity. If the government wants to put a per unit tax on a product so that it can raise revenue to support local schools, it would most likely accomplish this goal by doing which of the following? * O placing a tax on a good with an elastic demand. placing a tax on a good that has many substitutes. placing a tax on a good with an inelastic demand. placing a tax on a good with a perfectly elastic demand. O relying of the goodness of mankind and simply ask for donations.
Price 20 18 16 14 12 10 х $1.200 0 300 400 500 $2.000 S1 SO Quantity Assume that the market in the graph above is at an initial equilibrium price of $10 and an equilibrium quantity of 500 units. If the government decides to add a $4 per-unit tax on this good, it will be able to collect the following amount of tax revenue: Demand 1000
Can you explain why am I answer is wrong and what the correct one is.
Q : 35 Please help
1.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: a. 2 percent and total expenditures on bread will rise. b. 2 percent and total expenditures on bread will fall. c. 20 percent and total expenditures on bread will rise. d. 20 percent and total expenditures on bread will fall. e. 20 percent and total expenditures on bread will be unchanged.