Carbon tax debate heats up in Montpelier VTVermonters are debating the pros and cons of a state carbon tax-a new tax on gasoline, heating oil, and other fossil fuels sold inthe state. Backers say the tax revenue would be used to cut other taxes and increase energy efficiency.Source: Watchdog.org, December 3, 2015Draw a graph of the market for gasoline in Vermont to show the "pro" and the "con" for a state carbon tax.The graph shows the market for gasoline in Vermont when there is no carbon tax on gasoline.Draw a point that shows the market equilibrium. Label it 1Transport that uses gasoline creates emissions pollution, and the quantity of emissions increases as the amount of gasoline usedincreases. Draw the marginal social cost curve and label the curve.Draw a point at the efficient market outcome. Label it 2.Now suppose the government places a carbon tax on gasoline equal to the marginal external cost at the efficient quantity oftransport.Draw an arrow at the efficient quantity to show the tax that delivers the efficient outcome.esc1062*3$4A25%Oll6&7O*8O4.504,003.50-3.00-2.502.001.50-0.500.00€(Price and cost (dollars per gallon)9100 200 300 400 500 600Quantity (millions of gallons)>>> Draw only the objects specified in the question.1OS=MC1'D=MB700 800QG

Supply represented by marginal cost which implies the positive relation between price and quantity.…

on tax debate heats up in Montpelier VT monters are debating the pros and cons of a state carbon tax-a ne- tate. Backers say the tax revenue would be used to cut other taxes va graph of the market for gasoline in Vermont to show the "pro" an graph shows the market for gasoline in Vermont when there is no c w a point that shows the market equilibrium. Label it 1. nsport that uses gasoline creates emissions pollution, and the quant reases. Draw the marginal social cost curve and label the curve. raw a point at the efficient market outcome. Label it 2. ow suppose the government places a carbon tax on gasoline equal to ansport. raw an arrow at the efficient quantity to show the tax that delivers the

on tax debate heats up in Montpelier VT monters are debating the pros and cons of a state carbon tax-a ne- tate. Backers say the tax revenue would be used to cut other taxes va graph of the market for gasoline in Vermont to show the "pro" an graph shows the market for gasoline in Vermont when there is no c w a point that shows the market equilibrium. Label it 1. nsport that uses gasoline creates emissions pollution, and the quant reases. Draw the marginal social cost curve and label the curve. raw a point at the efficient market outcome. Label it 2. ow suppose the government places a carbon tax on gasoline equal to ansport. raw an arrow at the efficient quantity to show the tax that delivers the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Four roommates a rc planning to sp<,nd the weekendin their dorm room watching old movies, and they arcdebating how many lo watch. Herc is their willingnessto pay for each film: a. Within the donn room, is the showing of a moviea public good? Why or why not?b. If it costs $8 to rent a movie, how many movies shouldthe roommates rent to maximiz.c total surplus 7c. H they choose the optimal number from part (b)and then split the cost of renting the moviesequally, how much surplus does each personobtain from watching the movies?d. Is there any way to split the cost lo ensure tha teveryone benefits? What practical problcms doesthis solution raise?e. Su pposc they agrcc in advance to choose the ef.ficient number and lo split the cost of the moviesequall}'- When Steven is asked his willingness topa}\ will he have an incentive to tell the truth 7 Ifso, why? If not, what will he be tempted to say?f. What docs this example teach you about the optimal provision of public goods?
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
2. Use the graph below to answer the two questions on the right. Price If a positive externality exists and the government intervenes, which curve shifts and in what direction? Ssocial internal If a negative externality exists and the government does intervene, which curve shifts Docial and in what direction? Dinternal Quantity
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Price
What is an external benefit? An external benefit is a benefit that OA. always equals external cost OB. experiences increasing marginal returns C. affects someone other than the buyer of a good OD. is greatest at the equilibrium point
1. Externalities - Definition and examples
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” Why do you think Adam Smith preferred to impose a tax on luxury goods? Why do you think Adam Smith preferred a tax on ‘objects of almost universal consumption’? Note that ‘Smith’s proposal to tax sugar was not aimed at improving health’ Requirement: Demonstrate a precise understanding of Adam Smith’s meaning and intent, with the appropriate link to relevant economic concepts.
The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Which quantity is socially optimal (i.e. what is the efficient quantity)? What is the deadweight loss generated by the externality?
7. Failing to correct negative externalities will create a deadweight loss. Graph it! 8. Explain how the government can discourage negative externalities. Graph it!
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
Typed plz and asap Solve all the parts i will upvote