Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 8, Problem 8MCQ
To determine
To select:
The correct option that states the principal of fairness and its preposition.
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Answer the following questions. You may put your answers on this sheet and upload a picture. You can print this
and draw on your sheet. You can also just redraw the graph on your paper if you are doing this with paper and
pencil. Write the answers and calculations on a separate sheet of paper.
This is the market for bags of cat litter.
Price of Bag of Cat Litter (5)
10
Maximum WTP y=15
Minimum Costly 1.6667
10
20
50
70
Bags of Cat Libec (in thousands)
1. What are the equilibrium price P, and quantity Q, in this market? Identify them in the graph.
2. Calculate consumer surplus and producer surplus for the equilibrium. Include your formula and show your
work.
3. Suppose there is a $5.00 tax imposed on this market. Draw in the tax and label the quantity produced as Qr.
(You can estimate where the tax will go. We don't have exact measures with this graph.)
4. What is the price that buyers pay when there is a tax? Label it P, in your graph.
5. What is the price that sellers receive when…
The table shows the market for tulips.
Price
(dollars per
bunch)
Quantity demanded
Quantity supplied
(bunches per week)
10
100
40
12
90
60
14
80
80
16
70
100
18
60
120
If tulips are taxed at $6 a bunch, what is the tax revenue?
Tax revenue is $______ a week.
1. "Taxes are necessary evil". Based on what we discussed in class, discuss and argue why this is true. Then, describe in details how we can build an efficient taxation system?
Chapter 8 Solutions
Foundations of Economics (8th Edition)
Ch. 8 - Prob. 1SPPACh. 8 - Prob. 2SPPACh. 8 - Prob. 3SPPACh. 8 - Prob. 4SPPACh. 8 - Prob. 5SPPACh. 8 - Prob. 6SPPACh. 8 - Prob. 7SPPACh. 8 - Prob. 8SPPACh. 8 - Prob. 9SPPACh. 8 - Prob. 10SPPA
Ch. 8 - Prob. 1IAPACh. 8 - Prob. 2IAPACh. 8 - Prob. 3IAPACh. 8 - Prob. 4IAPACh. 8 - Prob. 5IAPACh. 8 - Prob. 6IAPACh. 8 - Prob. 7IAPACh. 8 - Prob. 8IAPACh. 8 - Prob. 9IAPACh. 8 - Prob. 10IAPACh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQ
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