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
Homework Answers
All the given condition will result in a deadweight loss..
Deadweight loss is actually a type cost and it is being created by market inefficiency. It can due to multiple reasons and some are price ceiling, providing subsidy, minimum wages laws, living wages laws etc.
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One of the following would not to lead to a deadweight loss. Which one? a. A...
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.
SSC 3383 Deadweight Loss WS1-M2 The following TWO questions refer to the supply and demand eurves illustrated be...
SSC 3383 Deadweight Loss WS1-M2 The following TWO questions refer to the supply and demand eurves illustrated below. Price Pa QQ2 Q3 Quantity 1. A price ceiling of P3 causes: a) A deadweight loss triangle whose corners are ABC. b) A deadweight loss triangle whose corners are ACD. c) A deadweight loss triangle whose corners are BEC. d) A deadweight loss triangle whose corners are CDE. 2. A price floor of P1 causes: a) Excess demand equal to the distance...
11. What type of goods would you recommend that the government tax if it wants the...
11. What type of goods would you recommend that the government tax if it wants the tax to result in no deadweight loss? Group of answer choices Unit elastic good with a price elasticity of demand and supply as close to 1 as possible Inelastic goods with a price elasticity of demand and supply as close to zero as possible Inelastic goods with a price elasticity of demand and supply as close to infinity as possible Elastic goods with a...
(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)
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per...
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
Please rank the follow curves as to how they would contribute to deadweight loss if a...
Please rank the follow curves as to how they would contribute to deadweight loss if a good that had this elasticity was taxed. Assume the supply curve has an elasticity equal to 1. Most deadweigh loss least deadweigh loss 1.a demand curve with price elastisity of demand equal to 100 2. a demand curve with price elastisity of demand equal to 0.4 3. a demand curve that is perfectly inelastic 4. a demand curve that is unit elastic
QUESTION 6 The deadweight loss associated with a per-unit tax will be small relative to the...
QUESTION 6 The deadweight loss associated with a per-unit tax will be small relative to the tax revenue collected if: supply and demand are both elastic. O A. supply and demand are both inelastic. OB. supply is elastic, demand is inelastic. OC demand is elastic, supply is inelastic. OD. QUESTION 7 Consider the following statements when answering this question 1. It is not possible to help consumers by simply shifting taxes from consumers paying them to producers paying them. II....
Which of the following statements is true? If the price of a good is lowered and...
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
5. Describe how deadweight loss changes when demand is elastic and inelastic. 8. Describe how deadweight...
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.
NAME PRINT LAST NAME, FIRST NAME SECTION Commodity taxes usually result in deadweight loss because a...
NAME PRINT LAST NAME, FIRST NAME SECTION Commodity taxes usually result in deadweight loss because a tax saus fall, increasing both consumer surplus and producer Surplus fall, decreasing both consumer surplus and producer surplus rise, increasing both consumer surplus and producer surplus rise, decreasing both consumer surplus and producer surplus Use the graph below to answer questions 6 through 10. Price 8.50 Supply + Tas 6.50 5.50 4.50 - Supply 3.50 Demand 750 1,500 Quantity If there is no tax...
SSC 3383 Deadweight Loss WS1-M2 The following TWO questions refer to the supply and demand eurves illustrated below. Price Pa QQ2 Q3 Quantity 1. A price ceiling of P3 causes: a) A deadweight loss triangle whose corners are ABC. b) A deadweight loss triangle whose corners are ACD. c) A deadweight loss triangle whose corners are BEC. d) A deadweight loss triangle whose corners are CDE. 2. A price floor of P1 causes: a) Excess demand equal to the distance...
(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)
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
QUESTION 6 The deadweight loss associated with a per-unit tax will be small relative to the tax revenue collected if: supply and demand are both elastic. O A. supply and demand are both inelastic. OB. supply is elastic, demand is inelastic. OC demand is elastic, supply is inelastic. OD. QUESTION 7 Consider the following statements when answering this question 1. It is not possible to help consumers by simply shifting taxes from consumers paying them to producers paying them. II....
Which of the following statements is true? If the price of a good is lowered and total revenue decreases, demand is elastic. If the price of a good is raised and total revenue does not change, demand is perfectly elastic. If the price of a good is lowered and total revenue increases, demand is inelastic. If the price of a good is raised and total revenue increases, demand is inelastic. and relatively inelastic demand is represented by a demand curve...
NAME PRINT LAST NAME, FIRST NAME SECTION Commodity taxes usually result in deadweight loss because a tax saus fall, increasing both consumer surplus and producer Surplus fall, decreasing both consumer surplus and producer surplus rise, increasing both consumer surplus and producer surplus rise, decreasing both consumer surplus and producer surplus Use the graph below to answer questions 6 through 10. Price 8.50 Supply + Tas 6.50 5.50 4.50 - Supply 3.50 Demand 750 1,500 Quantity If there is no tax...
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