Why is it that tax only changes perception instead of willingness to pay for a good?
Why is it that tax only changes perception instead of willingness to pay for a good?
Homework Answers
Willingness to pay for a product mainly depends on consumer income, availability of substitutes, consumers tastes and preferences, etc. Tax on a product makes a product costlier but does not affect the consumer income or tastes and preferences or availability of substitutes. So, tax only changes perception but not willingness to pay.
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Why is it that tax only changes perception instead of
willingness to pay for a good?
QUESTION 4 Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B...
QUESTION 4 Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B John Mary Good A $90 $35 Good B $30 $70 Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the table. What is John's maximum willingness to pay for the bundled goods? A. $90 B. $30 C. $105 OD.$120 QUESTION 5 Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B Mary John Good A $90 $35 Good B $30...
Look at the two tables below, which show, respectively, the willingness to pay and willingness to...
Look at the two tables below, which show, respectively, the
willingness to pay and willingness to accept of buyers and sellers
of bags of oranges. For the following questions, assume that the
equilibrium price and quantity will depend on the indicated changes
in supply and demand. Assume that the only market participants are
those listed by name in the two tables.
equilibrium price and quantity will depend on the Indicated changes in supply and demand. Assume that the only market...
For a given good, a consumer's willingness to pay is, by definition, the O same as...
For a given good, a consumer's willingness to pay is, by definition, the O same as the seller's willingness to sell. O amount of cash the consumer has on hand for purchase of the good. O amount the consumer offers at the start of a negotiation. O intensity of the consumer's desire for the good. O maximum price the consumer would pay for the good.
3. Please describe your willingness to pay for a certain good, in terms of dollars. Given...
3. Please describe your willingness to pay for a certain good, in terms of dollars. Given the current price of that good, what is your consumer surplus? Now imagine you run a business that sells a good of your choice. How would you use information on consumer's willingness to pay to determine the price at which you sell your good? Please describe the cost of production, average willingness to pay, and consumer and producer surpluses in your example. 4. In...
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of individual bags of oranges.
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables. a. Given the equilibrium price of S10, what is the equilibrium quantity given the data above? b. What if, instead of...
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept...
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables Minimum Maximum Actual Equilibrium Acceptable Price Person Price Willing To Pay $21 16 Person Price $10 10 10 10...
Table 7-3 The only four consumers in a market have the following willingness to pay for...
Table 7-3 The only four consumers in a market have the following willingness to pay for a good: Buyer IWialingness to Pay Carlos $15 Quilana $25 Wilbur $35 Ming-la $45 Refer to Table 7-3. If the market price for the good is $20, who will purchase the good? Ming-la only Carlos and Quilana only Quilana and Wilbur only Quilana, Wilbur, and Ming-la only
Question 6 O out of 10 points Table: Willingness to Pay Maximum Willingness to Pay for...
Question 6 O out of 10 points Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B John Mary Good A $90 $35 Good B $30 $70 Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the table. Assume the firm has zero costs. If the firm were to set individual prices for each of the two goods, how much total profit does it earn from Good A? Selected Answer: D. $125 Answers: A. $90 B....
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept...
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables. Person: Max price person willing to pay Actual Price bob $13 $8 barb 12 8 bill 11 8 bart...
Marginal willingness to pay ____________. is the consumer’s ability to pay for consumption of all units...
Marginal willingness to pay ____________. is the consumer’s ability to pay for consumption of all units of the good is the consumer’s additional willingness to pay for one more unit of the good is the consumer’s additional ability to pay for one more unit of the good is the consumer’s willingness to pay for consumption of all units of the good
QUESTION 4 Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B John Mary Good A $90 $35 Good B $30 $70 Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the table. What is John's maximum willingness to pay for the bundled goods? A. $90 B. $30 C. $105 OD.$120 QUESTION 5 Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B Mary John Good A $90 $35 Good B $30...
Look at the two tables below, which show, respectively, the
willingness to pay and willingness to accept of buyers and sellers
of bags of oranges. For the following questions, assume that the
equilibrium price and quantity will depend on the indicated changes
in supply and demand. Assume that the only market participants are
those listed by name in the two tables.
equilibrium price and quantity will depend on the Indicated changes in supply and demand. Assume that the only market...
For a given good, a consumer's willingness to pay is, by definition, the O same as the seller's willingness to sell. O amount of cash the consumer has on hand for purchase of the good. O amount the consumer offers at the start of a negotiation. O intensity of the consumer's desire for the good. O maximum price the consumer would pay for the good.
Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables Minimum Maximum Actual Equilibrium Acceptable Price Person Price Willing To Pay $21 16 Person Price $10 10 10 10...
Table 7-3 The only four consumers in a market have the following willingness to pay for a good: Buyer IWialingness to Pay Carlos $15 Quilana $25 Wilbur $35 Ming-la $45 Refer to Table 7-3. If the market price for the good is $20, who will purchase the good? Ming-la only Carlos and Quilana only Quilana and Wilbur only Quilana, Wilbur, and Ming-la only
Question 6 O out of 10 points Table: Willingness to Pay Maximum Willingness to Pay for Good A and Good B John Mary Good A $90 $35 Good B $30 $70 Reference: Ref 14-6 (Table: Willingness to Pay) Refer to the table. Assume the firm has zero costs. If the firm were to set individual prices for each of the two goods, how much total profit does it earn from Good A? Selected Answer: D. $125 Answers: A. $90 B....
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