(Figure: The Market for Season Passes to Amusement Parks) Use Figure: The Market for Season Passes to Amusement Parks. Suppose with no tax the equilibrium price is $110 and the equilibrium quantity is 250. If the government levies a tax of $30 per season pass purchased, the new equilibrium price will be and the new equilibrium quantity will be Price (per pass) S3 S₂ S₁ So $140 130 120 110 100 0 O $130; 150 O $110; 250 O $140; 100 O $120; 200 100 150 200 D 250 300 Quantity (per week)

(Figure: The Market for Season Passes to Amusement Parks) Use Figure: The Market for Season Passes to Amusement Parks. Suppose with no tax the equilibrium price is $110 and the equilibrium quantity is 250. If the government levies a tax of $30 per season pass purchased, the new equilibrium price will be and the new equilibrium quantity will be Price (per pass) S3 S₂ S₁ So $140 130 120 110 100 0 O $130; 150 O $110; 250 O $140; 100 O $120; 200 100 150 200 D 250 300 Quantity (per week)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Supposed that UMA Condominiums are an ordinary good and demand for Condominiums is inelastic. What is the effect on Nagenyos Consumer Surplus if there is a decrease in price of Condominiums? Explain. 2. Based from your answer in the questions pertaining to the supply of Condominiums in response to the demand of Nagenyos, enumerate at least two (2) possible effects of the determinants of demand ( (a) price, (b) income, (c) price of related goods like apartments and residential houses, and (d) consumer taste and expectation) and determinants of supply ( (a) flexibility of inputs, (b) mobility of inputs, (c) ability to produce substitute and (d) time ).
4. In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm products why farmers may be better-off when harvests are low even if we ignore the money they receive from the set-aside program.
Use the following graph to answer the following question: Price ($) 40 25 15 8. 5n Quantity 15 25 50 75 100 200 Refer to the graph above. Suppose that the government imposes a price floor at $15. As a result, the market will experience OAsurplus of 50 units OA surplus of 25 units O No surplus or shortage O A shortage of 50 units
2) The diagram below represents the market for battery packs. If the price were currently at $28/pack there would be a: Group of answer choices surplus of 4 battery packs surplus of 20 battery packs shortage of 4 battery packs shortage of of 20 battery packs
$50 40 - 30- 2: 20 10 20 22 25 Number of Trips (1,000s per day) 5 10 15 е 3: This diagram shows the demand for trips across a bridge. If the price of crossing the bridge is $10.00 (which determines a quantity demanded of 20 trips in the graph), consumer surplus is ge 4: $44 $440 $400 $100
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Don't use chatgpt and make sure you include the graphs needed (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?
Price $0 $5 $10 $15 $20 A 9:28 AM C E Supply of Grapefruits 0 5 10 15 20 Both $10 Both $50 Both $200 This table shows the supply and demand schedule for the grapefruit market. Assume that the supply and demand curves are linear. At the market equilibrium price, what are the consumer surplus and the producer surplus? B Print Assessment D Demand for Grapefruits 20 15 10 5 0 CS $45; PS $15 Both $100
3. Consider a market with a demand QD= 50 – 3P and a supply curve QS= 2P – 15. a. What are the equilibrium price and quantity in this market?
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8. Suppose we want regular cars to be gradually replaced by electric cars. There are several kinds of government interventions that could be used to make this happen, or at least to push the car market to produce and sell more electric cars. Explain how a tax could be used for this purpose, and then explain how a subsidy could be used for this purpose.