Governments must have funding to provide basic services, and a local government is considering a tax on apartment rentals. Such a taxhas been implemented in the past on the landlords who rent apartments; however, these landlords argued persuasively that they borethe entire burden of such a tax and have convinced the city council to eliminate the tax on landlords and instead impose a $100 tax onrenters. The graph below shows the current market for apartments; demand is represented by the inverse demand curvep = 1200-10q, and supply is fixed at 80 apartments.What is the market price for apartments? $Using the line tool, draw this price on the graph.To refer to the graphing tutorial for this question type, please click here.IGThe Market for ApartmentsMonthly rent160015001400130012001100100090080070060050040030020010001 2 % % % % ò 88Q110100130160150Apartments

Scenario:The government is considering imposing a tax on apartment rentals.Instead of taxing…

Answered: Governments must have funding to…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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Another strategy Alex can increase his economic profit is to set an all-or-nothing price lower than the monopoly price. The all-or-nothing pricing strategy requires a consumer to buy all the apples at a given price. If Alex sets the all-or-nothing price at $6.25, calculate the economic rent andconsumer surplus under all-or-nothing pricing for different quantities. What is the optimal all-or- nothing quantity Alex should sell to maximize economic profit?
Refer to the graph shown. If this graph represents a competitive market, the equilibrium price and quantity will be: Multiple Choice $13.50 and 325, respectively. $7 and 325, respectively. $10 and 500, respectively. $7 and 750, respectively.
A recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?
ECON 170 Principles of Microeconomics e. Suppose the government imposes a price ceiling at $1,400. Is this a binding or a non-binding price ceiling? binding What quantity of two-bedroom apartments will be rented? Q = Briefly explain why you chose that quantity: Is there a shortage, a surplus, or neither? 2000 1800 1600 1400. 1200 1000 800 600 400 Unit 1 Study Guide (SG) 200 0 O 30 60 90 120 150 180 210 240 270 300 330 360 If there is a shortage or surplus, give the numerical value (Show your work!). Calculate Consumer Surplus, Producer Surplus, Total Surplus, and Deadweight loss. Illustrate CS, PS, and DWL (if any).
8:31 * O E O N ll 97% I READ ONLY - This is an older file format. To ... Page 2 of 3 Q.4 Suppose the demand and supply curves given in Figure 2 below shows the market of smart phones. Using the Figure 2 given below, answer the following questions: FIGURE 2 Supply Curve ($) 9 8 7 6 5 4 3 1 Demand Curve (D) 1 3 4 5 6 7 8 9 Calculate the value of consumer and producer surplus at equilibrium. a. b. Suppose government imposes $1 per unit tax on buyers, what would be the new equilibrium price and quantity after tax. c. Discuss the incidence of the tax or in other words the effects of tax on the distribution of economie welfare d. Instead on buyers, if the tax in imposed on sellers, would the incidence of the tax be different? Why or why not? Discuss. Page 3 of 3 3 of 3 417 Words II
l Verizon 10:55 PM ncuone.ncu.edu Instructions Assume that the City Council in Prescott, Arizona is considering implementing price ceilings on rental units based on the number of bedrooms in the unit. The demand function for rental units (on a single bedroom equivalent basis) is given by Qp = 120 – 4P and the supply function is given by Qs = 2P, where P is price and Q is quantity. The Council is considering imposing a ceiling price on rental units of Pmax = 16. 1. Using the given functions, draw a corresponding demand curve and a supply curve. Properly label the equilibrium price and quantity. Then show what will happen to equilibrium if the City Council imposes a price ceiling at 16. NOTE: There are numerous guides online that demonstrate how to draw supply and demand curves; most are done in Excel. To create the demand curves that you need for this assignment, create an Excel file with a price column, including prices from $1 to $30. Using the formulas, compute the quantity demanded…
o Suppose the Canadian government has decided to place an excise tax of $20 per tire on producers of automobile tires. Excise taxes are also called sales or commodity taxes. Previously, there was no excise tax on automobile tires. As a result of the excise tax, producers of tires, such as Bridgestone and Michelin, are going to alter their tire prices. The graph illustrates the demand and supply curves for automobile tires before the excise tax. Please shift the appropriate curve or curves on the graph to demonstrate the impact of the new tax. What is the price consumers pay for a tire post tax? Round to the nearest 10. price paid by consumers: $ What is the price producers receive for a tire net of taxes? Round to the nearest 10. Price 150 140 130 120 110 100 90 80 70 60 50 O 1 2 3 01 4 5 Quantity 6 Supply Demad 7 8 9 10
Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
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?
New York City has a long-standing policy of controlling rents in certain parts of the city—in essence,a price ceiling on rent. Is the market for apartmentslikely to be efficient or inefficient? What does thisimply for the size of total surplus?
Suppose the town government imposes a $2 per hour tax on all gardeners. Indicatethe effect of the tax on the market for gardeners. What is the effect on the equilibriumwage and the equilibrium number of gardeners hired? How much does the gardenerreceive? How much does the customer pay? How much does the government receiveas tax revenue?

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