Question

uples/theory. 1. Suppose that for the United States, (%A Gun Murder Rate)/(%A Gun OwnerShip Rate) = .009.1 la. If gun control legislation were able to reduce gun ownership by 99 percent, how exactly would society benefit? 1b. Based upon your answer in la, What can you conclude about the likely efficacy of gun control legislation in the United States? 2. Refer back to#1, suppose the demand for guns is Q 500 .45P and the supply of guns is Q- 100+ .55P. How many guns would be affected by a complete ban on their sale? 3. Suppose in the country of Weedland, the market demand for grams of marijuana is given by QD 100-3P, and the market supply for marijuana is given by Qs = -50 +2P, where P is the price of a gram of marijuana. 3a. Suppose an excise tax of $5 is levied upon sellers of marijuana. Relative to the initial equilibrium price and quantity, what is the new post-tax equilibrium price and quantity?2 3b. How is the burden of the excise tax shared between buyers and sellers of marijuana? What explains the distribution of the tax burden between buyers and sellers? How much tax revenue is raised?3 3c. If marijuana sellers are wealthier than marijuana buyers, is the burden of the excise tax fair? Why?4 4. Redo# 3 for the case in which the excise tax of $5 is levied upon buyers of marijuana 5

Answer 1

solution: for united states A Gun morder Rate) / (-1.0 Gen ownership Rate) =0.009. gun (a) If gun control legislation were able to reduce ownership by 99.7., exactly would society benefit: → If gun ownership is reduced by 991. 1. Then to change in gun merdery Bate=0.009) (-99-6.) - F0.891.). It means that the gun murder rate will come down by 0.8911. if the gun contro i legislation can achieve the objective So, gocietly will be better off by decreasing gon murder rate by 0.891/

(6) Conclusion about likely efficiancy of gun control legislation in us: =) Gen control legislation has impact only upon the control of gun ownership. rate associated • The legislation can only affect the murder with the ownership of guns. · But, the legislation does not show control over the other seasons that make morders due to gun.