Answer is B but I don't know how to do it.
Homework Answers
Tax portion that is paid by consumers = elasticity of supply / (elasticity of demand + elasticity of supply)
= 0.5 / (1.5 + 0.5)... (take absolute values)
= 0.5/0.20
= 0.25
Select B
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Answer is B but I don't know how to do it.
DJ makes zero economic pront....
Consider a good whose own price elasticity of demand is 0 and price elasticity of supply...
Consider a good whose own price elasticity of demand is 0 and price elasticity of supply is 1. The fraction of a specific tax that will be passed on to consumers is A. 1. B. 0.5. C. 0.25. D. 0. E. 0.75.
how do I do this problem. i know to take the derivative but I don't know...
how do I do this problem. i know to take the
derivative but I don't know what to do with the values.
2. Suppose demand is given by Qa = 31 +2P. - 2P where I is income, P, is the price of a related good, and P is the price of the product. If I = 6, P. = 17, and P = 10, find (a) the price elasticity of demand: (b) the income elasticity of demand: (c) the...
Suppose that the market for rutabagas (in case you don't know, it is a root vegetable that's also...
Suppose that the market for rutabagas (in case you don't know, it is a root vegetable that's also known as Swedish Turnip) is competitive. The demand for rutabagas is Q 2,000 100P and the supply of rutabagas is -100+200P. (a) Suppose that Governor Sloop imposes a $2 per unit tax to be paid by consumers. Who bears the statutory incidence of the $2 per unit tax? Who bears the economic incidence of this tax? [A graph can be helpful but...
please help! I know the answers but I don't know how to get them. Figure EXF....
please help! I know the answers but I don't know how to get
them.
Figure EXF. Suppose D represents the market demand curve of US consumers. Then US firms begin to export to the UK, and US and UK consumers have a combined market demand at D'. The line S is US market supply. DI 5 10 15 20 25 30 35 40 45 50 55 60 Q 26. See Figure EXF. After exports begin, the surplus of US producers...
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9.When price increase from $43 to $49, quantity supplied increases from 220 units to 240 units....
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The ecur quality w all, Uut we do not know what will happen to the pe...
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please answer all don't understand Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces th...
please answer all don't understand
Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces the amount of Kit Kats he eats from 10 to 9. Calculate the elasticity for Kit Kats. Are Kit Kats elastic or inelastic? Why? 2. If the price of chocolate increases by 20 percent and the total revenue generated from the sale of chocolate rises even though quantity does not fall, what can be said about the elasticity of chocolate...
(67)Suppose that when the price of cherries is $10 per lb, the quantity supplied of cherries...
(67)Suppose that when the price of cherries is $10 per lb, the quantity supplied of cherries is 20 lbs. When price of cherries is $6 per lb, the quantity supplied of cherries is 12 lbs. The price elasticity of supply is: (a)1.7 (b)1.0 (c)2.5 (d)0.8 (68)If an excise tax is placed on the producer of a product that has a perfectly inelastic demand, given ceteris paribus then: (a)The entire tax will be paid by the producer (b)The consumer and producer...
Need help with 9, 10 and 11. 8-11. A typical consumer has a utility function for...
Need help with 9, 10 and 11.
8-11. A typical consumer has a utility function for cable movies given by the following function: U = 72X -0.15X2 where X is the number of cable movies viewed per year and U is measured in dollars. Questions 8 through 11 concern this consumer. 8. If the price of cable movies is set at $12 per movie, the consumer surplus gained by this typical consumer each year through purchasing cable movies will be:...
how do I do this problem. i know to take the
derivative but I don't know what to do with the values.
2. Suppose demand is given by Qa = 31 +2P. - 2P where I is income, P, is the price of a related good, and P is the price of the product. If I = 6, P. = 17, and P = 10, find (a) the price elasticity of demand: (b) the income elasticity of demand: (c) the...
Suppose that the market for rutabagas (in case you don't know, it is a root vegetable that's also known as Swedish Turnip) is competitive. The demand for rutabagas is Q 2,000 100P and the supply of rutabagas is -100+200P. (a) Suppose that Governor Sloop imposes a $2 per unit tax to be paid by consumers. Who bears the statutory incidence of the $2 per unit tax? Who bears the economic incidence of this tax? [A graph can be helpful but...
please help! I know the answers but I don't know how to get
them.
Figure EXF. Suppose D represents the market demand curve of US consumers. Then US firms begin to export to the UK, and US and UK consumers have a combined market demand at D'. The line S is US market supply. DI 5 10 15 20 25 30 35 40 45 50 55 60 Q 26. See Figure EXF. After exports begin, the surplus of US producers...
The ecur quality w all, Uut we do not know what will happen to the pe 4. If the price elasticity of demand for a good is 5.0, then tacticity of demand for a good is 5.0, then a 10 percent increase in the price results in a A 0.5 percent decrease in the quantity demanded b) A2 percent decrease in the quantity demanded A 5 percent decrease in the quantity demanded di A 50 percent decrease in the quantity...
please answer all don't understand
Short Answer 1. When the price of Kit Kats rises by 20 percent, Matt reduces the amount of Kit Kats he eats from 10 to 9. Calculate the elasticity for Kit Kats. Are Kit Kats elastic or inelastic? Why? 2. If the price of chocolate increases by 20 percent and the total revenue generated from the sale of chocolate rises even though quantity does not fall, what can be said about the elasticity of chocolate...
Need help with 9, 10 and 11.
8-11. A typical consumer has a utility function for cable movies given by the following function: U = 72X -0.15X2 where X is the number of cable movies viewed per year and U is measured in dollars. Questions 8 through 11 concern this consumer. 8. If the price of cable movies is set at $12 per movie, the consumer surplus gained by this typical consumer each year through purchasing cable movies will be:...
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