Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

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Answer 1

Question

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

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Which of the following explains why is there is a deadweight loss associated with market that is not at equilibrium? A. When a price ceiling is in effect, producers refuse to sell goods at the lower price B. When a price floor is in effect, consumers refuse to sell the good at the lower price. C. When a price ceiling is in effect, consumers refuse to buy the good at the higher price. D. When a price ceiling is in effect, producers refuse to sell the good at the higher price. E. When a price floor is in effect, producers refuse to sell the good at the higher price. F. When a price floor is in effect, producers refuse to sell the good at the lower price.

Please answer a and b and explain the answers:

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Answer 2

Question

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

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Answer 3

Question

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

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Answer 4

Question

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

Answer 6

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

Answer 7

Chapter 7, Problem 16QE

(a)

To determine

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

Answer 8

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

Answer 9

(b)

To determine

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 7.1 - Prob. 1Q Ch. 7.1 - Prob. 2Q Ch. 7.1 - Prob. 3Q Ch. 7.1 - Prob. 4Q Ch. 7.1 - Prob. 5Q Ch. 7.1 - Prob. 6Q Ch. 7.1 - Prob. 7Q Ch. 7.1 - Prob. 8Q Ch. 7.1 - Prob. 9Q Ch. 7.1 - Prob. 10Q

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

Solution Summary: The author analyzes the shift in the supply curve as follows: Pf is the price floor which is above the equilibrium price ‘Pe’. The area of the tax paid by consumers is A and B.

Determine how a price floor is like a tax on consumer and a subsidy to suppliers and who gets the revenue.

Determine how a price floor is like a tax on the consumer and a subsidy to suppliers and who get the revenue in the case of price floor.

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Chapter 7 Solutions