Homework Answers
Yes a tax leads to a dead weight loss in the market, A dead weight loss is a the value lost due to decrease in the goods traded due to external factors like tax, a tax will make a difference between the goods that the consumers are paying and the price that the producers are receiving, At a higher price the consumer buy less and at a lower price the supplier sells less, this decrease in the goods traded will lead to a deadweight loss will mean a deadweight loss. This wouldn't have occurred in case the market clearing equilibrium.
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6. Does a tax lead to a deadweight loss? Explain your answer in detail.
1. Does a tax lead to a deadweight loss? Explain your answer in detail. 2. How...
1. Does a tax lead to a deadweight loss? Explain your answer in detail. 2. How does a tax impact consumer and producer surplus? 5. Describe how deadweight loss changes when demand is elastic and inelastic. 8. Describe how deadweight loss changes when supply is elastic and inelastic 10. Explain the difference between the benefits principle and the ability-to-pay principle.
How does a monopolistic equilibrium lead to a deadweight welfare loss in the market? Provide real...
How does a monopolistic equilibrium lead to a deadweight welfare loss in the market? Provide real world examples of deadweight loss.
(1) Briefly explain why deadweight loss exist when a tax is imposed. Why would deadweight loss be lower if the tax is i...
(1) Briefly explain why deadweight loss exist when a tax is imposed. Why would deadweight loss be lower if the tax is imposed on a good with inelastic demand? [3 Points)
Define social surplus and deadweight loss. Provide examples and explain your answer.
Define social surplus and deadweight loss. Provide examples and explain your answer.
One of the following would not to lead to a deadweight loss. Which one? a. A...
One of the following would not to lead to a deadweight loss. Which one? a. A tax imposed on sellers when demand is downward sloping and supply is perfectly elastic b. A price ceiling that is set below the equilibrium price c. A subsidy paid to sellers when both demand and supply are elastic, but not infinite d. A tax imposed on sellers when demand is perfectly inelastic e. All the above will result to a deadweight loss
2. What happens to the amount of deadweight loss as a tax increases? Explain and use...
2. What happens to the amount of deadweight loss as a tax increases? Explain and use mels supply/demand diagrams to defend your answer. udDly is 3. If given the option to reduce pollution using regulation (equal reduction by each firm) or tradeable permits (between low and high-cost firms), which would an economist choose? Explain. Price
58. A tax placed on land (fixed) would cause a. a huge deadweight loss. b. no...
58. A tax placed on land (fixed) would cause a. a huge deadweight loss. b. no deadweight loss. c. landlords to not bear any of the burden of the tax, d. enough tax revenue so that all other taxes could be eliminated. When a country is on the downward-sloping side of the Laffer curves, cutting tax rates will a. lower tax revenues and increase deadweight loss. b. lower both tax revenues and deadweight loss. c. increase tax revenues and decrease...
7. How does a tax impact consumer and producer surplus? 8. Describe how deadweight loss changes...
7. How does a tax impact consumer and producer surplus? 8. Describe how deadweight loss changes when demand is elastic and inelastic.
part c: what is the deadweight loss of this tax part d: which is greater: the...
part c: what is the deadweight loss of this tax
part d: which is greater: the loss in consumer surplus or the
loss in producer surplus
The following graph shows the equilibrium price and quantity in the market for chewing gum in the country of Argonia. Suppcse the govemment of Argonia passes a bill to impose a tax of 6 Argonian dollars on the production of chewing gum. Market for Chewing Gum The new equilibrium price is 7.5 Argonian dollars...
How do the elasticities of supply and demand affect the deadweight loss of a tax? Why...
How do the elasticities of supply and demand affect the deadweight loss of a tax? Why do they have this effect? Please give examples and support your answer with concepts from the textbook.
(1) Briefly explain why deadweight loss exist when a tax is imposed. Why would deadweight loss be lower if the tax is imposed on a good with inelastic demand? [3 Points)
2. What happens to the amount of deadweight loss as a tax increases? Explain and use mels supply/demand diagrams to defend your answer. udDly is 3. If given the option to reduce pollution using regulation (equal reduction by each firm) or tradeable permits (between low and high-cost firms), which would an economist choose? Explain. Price
58. A tax placed on land (fixed) would cause a. a huge deadweight loss. b. no deadweight loss. c. landlords to not bear any of the burden of the tax, d. enough tax revenue so that all other taxes could be eliminated. When a country is on the downward-sloping side of the Laffer curves, cutting tax rates will a. lower tax revenues and increase deadweight loss. b. lower both tax revenues and deadweight loss. c. increase tax revenues and decrease...
7. How does a tax impact consumer and producer surplus? 8. Describe how deadweight loss changes when demand is elastic and inelastic.
part c: what is the deadweight loss of this tax
part d: which is greater: the loss in consumer surplus or the
loss in producer surplus
The following graph shows the equilibrium price and quantity in the market for chewing gum in the country of Argonia. Suppcse the govemment of Argonia passes a bill to impose a tax of 6 Argonian dollars on the production of chewing gum. Market for Chewing Gum The new equilibrium price is 7.5 Argonian dollars...
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