ZuoTi.Pro
Question
Given the graph, what are these blanks?
Problem 18-10 The figure below shows the daily market for water skiing permits on El Dorado Lake. Suppose each skier (each permit) causes $4 of damage to the lake. Priceof ski permits(S) · 18 16 14 12 10 Tools «МС social MBocial Date DWLDW oWl2 MB pvt 10 20 30 40 50 60 70 80 90 100 Skiers per day
a. Draw the social benefit curve that accounts for the external cost of skiers, and draw the deadweight loss that occurs whern consumers are unable to internalize the $4 external cost they cause from skiing Instructions: Use the tools provided to draw the social benefit curve (MBsocial) and the deadweight loss (DwL) Instructions: Round your answers to the nearest whole number. The socially optimal level of water skling ispermits. If there is no government intervention in this market, the deedweight loss s b. Suppose the government imposes an $8 tax on buyers of ski permits. Draw the after-tax demand curve. Instructions: Use the tool provided to draw the after-tax demand curve (Dafter-tax) The $8 tax is Click to select).Draw the deadweight loss associated with this tax. Instructions: Use the tools provided to draw the deadweight loss (DWL2). The deadweight loss is
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Problem 18-10 The figure below shows the daily market for water skiing permits on El Dorado Lake. Suppose each skier (each permit) causes $4 of damage to the lake. Priceof ski permits(S) · 18 16 14 12 10 Tools «МС social MBocial Date DWLDW oWl2 MB pvt 10 20 30 40 50 60 70 80 90 100 Skiers per day

Given the graph, the blanks are as follows:

a. The socially optimal level of water skiing is 30 permits.

If there is no government intervention in this market, deadweight loss = 1/2 * (40-30) * (8-4) = $20.

b. The deadweight loss after the imposition of tax = 1/2/ * 8 * (40-20)= $80.

1 4
Add a comment
Know the answer?
Add Answer to:
Given the graph, what are these blanks? Problem 18-10 The figure below shows the daily market...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The figure below shows the daily market for water-skiing permits on Shuswap Lake in British Columbia....

    The figure below shows the daily market for water-skiing permits on Shuswap Lake in British Columbia. Suppose that each skier (i.e. each permit) imposes a $4 negative externality on the lake. a. The socially optimal level of water skiing is permits. b. If there is no government intervention in this market, the loss of surplus would be $ . Please let me know why the $80 is incorrect and what the right answer is. The figure below shows the daily...

  • igure18p-6 shows the daily market for water skiing permits problen solution

    Figure 18P-6 shows the daily market for waterskiing permits on El Dorado Lake. Suppose each skier (each permit) causes $4 of damage to the lake. a. Calculate the loss of surplus if there is no government intervention in this market. b. Suppose the government imposes a $12 tax on suppliers of ski permits. Compared to no intervention, what is the net surplus gain or loss from this tax? c. What is the socially optimal level of water skiing?

  • The figure below shows supply and demand for planting trees, based on private costs and benefits....

    The figure below shows supply and demand for planting trees, based on private costs and benefits. Trees sequester carbon, meaning that they help counteract pollutants that contribute to climate change. Price of trees (S) Tools MCpm 20 18 16 14 A, DWL Social Cost 10 0 10 20 30 40 50 60 70 80 90 100 C Quantity of trees a. Suppose that the carbon sequestration that results from planting a tree is worth $4. Graph the social cost curve...

  • The figure below shows supply and demand for first-aid training, based on private costs and benefits.

     Problem 18-5 The figure below shows supply and demand for first-aid training, based on private costs and benefits. a. Suppose that the external benefit from first-aid training is worth $6. Graph the social benefit curve for first-aid training that accounts for the external benefit. Instructions: Use the tool provided (MBsociall and plot only the two endpoints across the entire range of output (0 - 30). b. Ignoring the social benefits of training, _______  hours of first-aid training will occur. c. The socially optimal quantity of...

  • I’m so lost, help! thanks. The figure below shows a market in equilibrium. 19 Price (s)...

    I’m so lost, help! thanks. The figure below shows a market in equilibrium. 19 Price (s) Tools oints DWL Floor ONDOR References 4 8 12 16 20 24 28 Quantity < Prev 19 of 20 Next > Help Save & Exit Sub 19 a. Draw a price floor at $12. Instructions: Use the tool provided (Floory) to draw the price floor. Place your endpoints at 0-0 and Q-24 The amount of surplus at this price is Book erences The deadweight...

  • Help! Based on this data, what are c). d). and e). 20 Problem 14-8 The figure...

    Help! Based on this data, what are c). d). and e). 20 Problem 14-8 The figure below presents the demand curve, marginal revenue, and marginal costs facing a 6.25 points Price ($) References Tools 50 45 40 35 30 25 20 15 10 F MC DWL CS CS MR 1 23 4 567 8 9 10 11 Quantity Check my work View previous att c. Determine the efficiency costs (deadweight loss) of monopoly output/pricing Use the tool provided (DWL) to...

  • Suppose the following data represent the market demand for college education: Tuition Enrollment Demanded (per year)...

    Suppose the following data represent the market demand for college education: Tuition Enrollment Demanded (per year) (millions per year) $40,000 35,000 30,000 25,000 20,000 15,000 10,000 000 AN - 5,000 Instructions: Enter your responses as whole numbers. a. If tuition is set at $15,000, how many students will enroll? 6 million students Now suppose that society gets an external benefit of $5,000 for every enrolled student b. Draw the social and market demand curves for this situation on the graph...

  • 5) (28 points) Suppose the demand and supply for flu shots are given by pd =...

    5) (28 points) Suppose the demand and supply for flu shots are given by pd = 1200-Q ps = 440 + Q Suppose flu shots generate a positive externality, and the marginal external benefit (MEB) is MEB=60 -0.050. (a) Derive the marginal social benefit (MSB) curve. (b) Draw the Demand, Supply, and MSB curves on the same graph (with P on the vertical axis and Q on the horizontal axis) and clearly indicate the curves in your graph. (c) Calculate...

  • Problem 18-4 The weekly supply and demand for packs of cigarettes in the United States is...

    Problem 18-4 The weekly supply and demand for packs of cigarettes in the United States is given in the figure below Price (S) Tools 36 r 34 32 30 MBsocial s-MCpvt MC social 24 20 18 F 16 F 14 12 10 MB 2468 1012141618 20 22 2426283032 Pack of cigarettes (millions) a. Suppose cigarette smoking causes a $6/pack external cost on nonsmokers. Draw the social benefit curve that accounts for the external cost associated with smoking. Instructions: Use the...

  • Please draw the graph The figure below shows the hypothetical domestic supply and demand for baseball...

    Please draw the graph The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. The world price ls also shown on the graph. Suppose that there are currently no import restrictions on baseball caps and that Spanish consumers are Indifferent between domestic and imported baseball caps. Now suppose that because of intense lobbying by domestic baseball cap manufacturers, the Spanish government decides to impose an import quota of 20,000 basebell caps per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT