EBK PEARSON ETEXT MICROECONOMICS -- ACC
9th Edition
ISBN: 9780136850892
Author: Rubinfeld
Publisher: VST
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Chapter 9, Problem 7E
The United States currently imports all of its coffee. The annual
- a. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded?
- b. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded?
- c. Calculate the lost
consumer surplus . - d. Calculate the tax revenue collected by the government.
- e. Does the tariff result in a net gain or a net loss to society as a whole?
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Jim's Bank Account for the Year to 30 April 2008:
We will start by calculating the balance of the business bank account, using the transactions provided.
Opening Balance:
Jim initially deposited €150,000 into his business bank account on 1 May 2007.
Transactions:
Receipts:
Cash Sales (May 2007 to April 2008): €96,000
Credit Sales (Business customers): €19,600 (Note: This amount is not yet received as it is on credit, but it will be included in the Income Statement and not the bank balance at this stage.)
Bank receipts from credit customers (amount owed at 30 April 2008): €6,800
Total Receipts:€96,000 (Cash Sales) + €6,800 (credit customer payments) = €102,800
Payments/Expenditures:
Lease Payment (Paid in advance for five years): €50,000
Shop Fitting: €10,000
Assistant’s Wages: €250 per month × 12 months = €3,000
Telephone expenses: €800
Heat & Light expenses: €1,000
Jim’s withdrawals for personal expenditure: €1,000 × 12 months = €12,000
Accounting Fee (after the year-end):…
Chapter 9 Solutions
EBK PEARSON ETEXT MICROECONOMICS -- ACC
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