The following figure shows the market for steel. For the market with pollution in the following Figure, what constant, specific tax on output could the government set to maximize welfare?*
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- A country is considering a ban on child labor. a. Under what condition would a ban on child labor be effective? You don't need to draw a diagram, just briefly explain the logic of how under this condition, banning child labor could actually cause child labor to decline. b. Now suppose that the condition you identified in part a does not hold. Identify one reason why the ban on child labor could actually cause child labor to either increase or become more harmful.Which of the following is NOT one of the consequences of a binding Price Ceiling? Select one: a. an illegal black market b. a shortage c. a surplus d. a decrease in the price of the good below its equilibrium priceIn competitive markets, we know that: P= MWTP P= MC MC= AC P= Min AC Which result(s) implies that the outcome is socially optimal?
- Use the following information to answer Questions 1 - 4: In a competitive market for fresh lemonade, the market demand for 12-ounce servings is QD = 100 – 10P and the market supply is QS = 15P. Calculate the competitive market equilibrium price. Calculate the competitive market equilibrium quantity. Calculate Total Surplus at the competitive market equilibrium. Now suppose that the production of lemonade caused a costly negative externality on innocent bystanders (e.g., squirted acidic lemon juice in their eyes). Given the externality, would the unregulated market price of lemonade from 1 be efficient? If not, is it too high o too low?Question is in the photo! Thank you so much!ECON 201 (Section E) – Homework 4 Name: Question 1: Suppose the market for cigarettes can be represented by the following demand and supply Q = 5000 – 20P Q = 40P – 400 equations: a) Find the free market equilibrium: price, quantity, CS, PS, and TS. Graph the market below. b) Suppose the government comes in and adds a tax on each box of cigarettes sold and makes consumers pay for this tax (when they buy the good). The new demand curve with tax is Q = 5000 – 20(P + 10). Graph the situation below. Calculate the new equilibrium price and quantity with the tax; how much the tax is per box of cigarettes; the new CS, PS, Tax Revenue, and TS; the DWL the tax creates (if any). i. ii. ii. iv.
- Suppose that there is an unregulated market for pesticides. When the factories produce pesticide, they also create waste that they dump into a lake on the outskirts of town. The market for pesticides is given by the following equations (note that Q is in tons, and P is in 1000s of dollars: Demand: P = 8 – Q Supply: P = Q Marginal Social Cost: P = 2 + Q Now suppose the government levies a pollution tax. What is the tax per ton of pesticide that will achieve the socially efficient outcome? If the production of pesticides at any level produces pollution, why is the socially optimal quantity not zero?When people wear masks during a pandemic it provides an external benefit to others. Economists would likely argue that governments should socially optimal level. for masks otherwise the amount of mask wearing produced by the market would be the Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a impose a tax; above provide a subsidy; below impose a tax; below P. provide a subsidy; aboveSome economists think that gas taxes in Europe, averaging around $2.50 per gallon, are too high from the perspective of economic efficiency. Suppose that this is true, and that social welfare could be increased with slightly lower gas taxes. Present a welfare analysis graph of the gasoline market in Europe with a gas tax that is too high. Identify five areas in your graph: 1. Consumer surplus 2. Producer surplus 3. Externality damage 4. Tax revenues 5. The potential welfare gain if taxes were lowered to the "correct" level.
- The diagram belew gives informetion about demand and supply for robots in Econland 13 12 11 10 $ 9 8. 4. 012 3 4 5 6 7 89 10 Suppose that each robot in Econland creates a $5 positive externality because of how they make neighborhoods a safer place. What is the consumer surplus of Econland in the free market? (Note: A common question here is whether you should include the externality or not. This is part of this question for you to decide on whether to do so or not.) O -12.5 O 37.5 O 17.5 O75 O 12.5 432109876543210Most countries today have subsidised the provision of education. Consider an imaginary country, Gondolin. Gondolin pays a subsidy of $10 000 per year to each student enrolled in tertiary education. (a) Depict, with the help of a figure, the initial market for tertiary education in Gondolin, assume that: 1) education was left to the competitive free market; 2) the marginal private benefit is equal to the marginal social benefit; 3) the marginal private cost is equal to the marginal social cost. Now describe, using the help of the figure, the effect of the government subsidy on the price and quantity traded of tertiary education, where the X axis of the figure should be the quantity of students enrolled in tertiary education. You do not need to use actual numbers – focus on the direction of change in price and quantity traded caused by the subsidy.Which of the following best describes the idea of market efficiency? Group of answer choices A market is efficient when government determines the price of the good. A market is efficient when there is only one seller of the good. A market is efficient when total net gains (consumer surplus + producer surplus) are maximized. A market is efficient when consumers pay low prices.