Microeconomics:
4th Edition
ISBN: 9781464143878
Author: Paul Krugman
Publisher: Worth Publishers
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Chapter 19, Problem 7P
To determine
The
Concept Introduction:
Demand for labor - It refers to the quantity of workers demanded by the producers at a given wage rate. A profit maximizing producer will always employ labor up to a point where the value of marginal product of the last unit of worker is equal to the cost of the last unit of worker employed. That is,
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The graph shows the supply and demand curves of high-fructose corn syrup, a sweetener commonly used in the production of
sweets and soda due to its low cost. In an effort to curb health issues, Congress puts an excise or commodity tax on corn syrup
at $2 per liter.
1. Shade in the region of the graph representing the total tax revenue that this tax will generate.
2. Shade in the region of the graph representing the deadweight loss that this tax will generate.
Price ($) per liter
10
9
Supply
8
7
60
5
3
2
Demand
↓
0
0
1
2
3
4
5
6
7
8.
9
10
Quantity (millions of liters)
00
MacBook Air
Tax Revenue
Deadweight Loss
000
000
F4
AA
DII
DD
L
F5
F6
F7
F8
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F10
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%
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what is defecit in economy?
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