MICROECONOMICS
MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
Question
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Chapter 10, Problem 5QE

(a)

To determine

Revenue gains to the domestic producers.

(b)

To determine

Revenue gains to the government.

(c)

To determine

Cost to the domestic producers to produce the additional output.

(d)

To determine

Final gains or loss to the domestic producers.

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(d) Calculate the total change in qı. Total change: 007 (sp) S to vlijnsi (e) B₁ is our original budget constraint and B2 is our new budget constraint after the price of good 1 (p1) increased. Decompose the change in qı (that occurred from the increase in p₁) into the income and substitution effects. It is okay to estimate as needed via visual inspection. Add any necessary information to the graph to support your 03 answer. Substitution Effect: Income Effect:
everything is in image (8 and 10) there are two images each separate questions
everything is in the picture (13) the first blank has the options (an equilibrium or a surplus) the second blank has the options (a surplus or a shortage)
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