MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 20QE
(a)
To determine
Demonstrate the effect of tax using the demand and supply curve.
(b)
To determine
Describe the effect of tax in natural gas price in Argentina.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Draw a supply and demand curve for oil. The government says we can no longer import oil from overseas, what happens to the supply or demand of oil? Why?
Why is there a price hike in sugar in the Philippines?
In autarky, what would the equilibrium price and quantity be in Peru and Moldova?
Chapter 4 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
Knowledge Booster
Similar questions
- answer quicklyarrow_forwardDiscuss the price elasticity of demand and the price elasticity of supply of goods that have low value but are limited in supply. Discuss why the reduction in world price of such commodities can be considered harmful to an economy that exports such commodities.arrow_forwardSuppose a decrease in the world demand for desktop computers causes the price of desktop computers to fall from $600 to $500. Before the fall in demand, Juna, a local computer dealer in Japan, used to produce 9,000 desktop computers and exported 50 percent of it to other countries every week. However, after the fall in demand, Juna reduced its production to 8,000 units and exports only 40 percent of its total output.a. What are the changes in the quantity sold to domestic consumersb. What are the changes in the consumer surplus?c. Sketch a diagram to illustrate the changes for Juna.arrow_forward
- Please answer in paragraphs. Rate wil be given! What would happen if the government imposes a price ceiling on oil and gas prices, how would this affect the market in terms of demand and supply? Would this work?arrow_forwardA. What effect will each of the following have on the demand for product B? 1. Product B becomes more fashionable. 2. The price of substitute product C falls. 3. A decline in incomes if B is an inferior product. 4. Consumers anticipate the price of B will be lower in the near future. 5. The price of complementary product D falls. 6. Foreign tariff barriers on B are eliminated. B. What effect will each of the following have on the supply for product B? 1. A technological advance in the methods of producing B. 2. A decline in the number of firms in industry B. 3. An increase in the price of resources required in the produUction of B. 4. The expectation that the equilibrium price of B will be lower in the future than it is currently. 5. A decline in the price of product A, a good whose production requires substantially the same techniques as does the production of B. 6. The levying of a specific sales tax upon B. 7. The granting of a 50-cent per unit subsidy of B produced.arrow_forwardWhat effect does a per-gallon tax on gasoline have on the market for gasoline? Who pays for the increase in tax?arrow_forward
- A tariff has been placed on sisal, a plant that is used to produce sisal rugs. Wool rugs are a substitute in consumption for sisal rugs. If the price of wool rugs increases and the effect of this is greater on the demand for sisal rugs than the impact of the tariff on supply, what happens to the equilibrium price and quantity of sisal rugs? a. Price increases, and quantity decreases. b. Price decreases, and quantity increases. c. Price increases, and quantity increases. d. Price decreases, and quantity decreases.arrow_forwardQUESTION 1 How would decreasing an import tariff on a good affect producer surplus in a nation that imports that good? a. no effect b. decrease only if demand is inelastic c. decrease d. decrease only if demand is elastic e. increasearrow_forwardi need the answer quicklyarrow_forward
- A controversial issue in managing climate change is the effect of taxes on gasoline. Higher taxes would reduce the after-tax price received by gasoline producers. The price elasticity of the supply of gasoline has been estimated to be 2.0.a. Explain why the price elasticity of supply is positive.b. Suppose that a tax on gasoline reduces the after-tax price of gasoline by 5%. By how much would suppliers reduce gasoline production?c. Compare the effect of the tax on gasoline in the short vis-à-vis long run.arrow_forwardWhat causes prices to increase and decrease in the supply and demand of commodities in the USA, How can an increase or decrease in price affect the demand and supply of a commodity? How can equilibrium prices help stabilize the demand/supply of a commodity?arrow_forwardQuestion 23 Katherine is the president of the United States. In an attempt to make gasoline prices cheaper, she has imposed a binding price ceiling on gas. What would she expect her critics to say? O The binding price ceiling will cause firms to produce only gasoline of the highest quality. O The binding price ceiling will encourage oil companies to deplete the resource too quickly. The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline. O The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market. The binding price ceiling will discourage individuals from using their personal automobiles to commute to work or school.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningExploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc