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Determine how the following government policy will move the equilibrium point.Choose the one best option
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- If a policy change in policy causes an economy to move a non-Pareto optimal situation to a Pareto optimal situation, what does this imply. How is social welfare acheived from a non-pareto optimal situation to a Pareto optimal Situation.Suppose that a tax is placed on a particular good. If the consumers pay a higher share of the tax, this indicates that the Group of answer choices government has required that buyers remit the tax payments. government has required that buyers remit the tax payments. supply is more inelastic than the demand. demand is more inelastic than the supply.What are some markets (goods or services) where an equilibrium might not be the most desirable point? Meaning, if left alone, the market produces too much or too little compared to societal needs.
- Refer to the following graph. Price Pf 0 QO Quantity Q1 S D Suppose this graph represents the market for cheese. In order to keep the price of cheese at Pf, government must: devise a mechanism to ration cheese to consumers. cause the supply of cheese to increase. cause the demand for cheese to decrease. prevent the excess supply from reaching the market.Suppose that the demand curve for wheat is: Q=140-20p and the supply curve is Q³=20p. The government imposes a price support at p-$4.00. What is the deadweight loss if the government supports the price by purchasing excess supply? (Assume the wheat will be destroyed.) The deadweight loss is $(Round your answer to the nearest penny and enter the deadweight loss as a positive number.) Suppose the government is considering supporting the price using a deficiency payment program. What would be the amount of the deficiency payment? The deficiency payment would be $ and there would be a deadweight loss of $. (Round your answer to the nearest penny and enter the deadweight loss as a positive number)The demand for corn is given by: QD= 240 -P. The supply of corn is given by: QS= 9P -760. The government has a price support policy of $180. Calculate the dollar amount of government expenditures for the price support policy. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.)
- What are the possible reasons why the government may make a market intervention? What are the possible implications of such interventions? How might the wedge between consumers and firms lead to market distortions?instructure.com/courses/11047/quizzes/121411/take The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. Qr units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. nº P₁ " A A B M C Q₁ Which areas represent consumer surplus before the tax is imposed? C+G+E B-C Q₂Would you kindly explain the fallacy or mistake in this type of thinking. Identify the fallacy or mistake in thinking in each of the following statements: a. Lowering taxes always lowers government revenues. b. Whenever there is a economic expansion, imports increase.
- Subsidies, unlike taxes, tend to increase the quantities of goods and/or services traded and consumers tend to pay a lower price for the good. From this perspective, the benefits for consumers are evident, while the effects for producers are not so conclusive. In this context, what would be the effect(s) that subsidies have on producers?I. Subsidies positively affect the quantity supplied, but the producer must pay the subsidy.II. Market prices increase.III. Producers increase the quantity offered, but the price they charge is the one that corresponds according to their supply function.Select one:a. II and IIIb. III onlyc. I, II and IIId. I and IIIe. I onlyBriefly discuss two justifications for government intervention in the economy.In a country the Government determines to increase the tax on gasoline by $0.20 per gallon. The price of gasoline after taxes though only goes up by $0.15. Does this mean the gas station is not collecting the correct amount of taxes?