Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 2CACQ
To determine
(a)
To explain:
The impact on supply of good Y due to decrease in price of input A.
To determine
(b)
To explain:
The impact on supply of good X due to imposition of excise tax of $3.
To determine
(c)
To explain:
The impact on supply of good X due to imposition of ad valeorm tax of 7 percent.
To determine
(d)
To explain:
The impact on supply of good X due to technology change.
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Students have asked these similar questions
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A increases.
It will increase.
It will not change.
It will decrease.
b. An excise tax of $4 is imposed on good X.
It will not change.
It will decrease.
It will increase.
c. An ad valorem tax of 5 percent is imposed on good X.
It will decrease.
It will not change.
It will increase.
d. A technological change reduces the cost of producing additional units of good X.
It will increase.
It will decrease.
It will not change.
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.
If costs of production of good X increases
what happens with supply or demand for
good X? Explain!
Chapter 2 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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