Q: a) Consider the market for cars, which is currently in equilibrium. The US government imposes an…
A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: QUESTION 9 If a price ceiling is binding in a given market, compared to equilibrium, what is the…
A: Government intervenes the price market using two of its important tools which are price ceiling and…
Q: Neither the demand nor the supply of sugar is perfectly elastic or inelastic. If the government…
A: The link between amount the number of a trade goods that producers wish to sell at numerous costs…
Q: Given: Qd= 18-0.25P Qs= 12+0.5P Solve for the following a. The equilibrium price and quantity b. If…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: An increase in the excise taxes will shift the supply on right side. Select one: e a. True O b.…
A: The government imposes taxes on the people in the economy in order to collect revenue. The taxes are…
Q: d. If P increases by 4%, what would happen (in percentage terms) to quantity demanded? e. If M…
A: Demand analysis deals with the estimation of demand/sales based on available historic data for the…
Q: 1. when both supply and demand curve shift to right the equlibrium price always falls the…
A: Supply and Demand are the two most important tools in the economy onto which the whole Market…
Q: Years ago, Ricky paid $500 for CDs to put together a collection. Today, he sold his CDs for $200.…
A: Precautions regarding the calculation of GDP: Value-added does not include the sale or purchase of…
Q: Which of the following is true when the equilibrium price of wheat in the world market is higher…
A: An open economy has the opportunity to sell additional output in the international market or to buy…
Q: The government of your country has recently decided to put a tax on calling cards. This decision by…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: 6. The cross-price clasticity of demand for commodity A with respect to the price of Commodity B s…
A: Cross elasticity of demand of a product is the change in the quantity demanded of a product due to…
Q: . The government has decided that the free-marketprice of cheese is too low.a. Suppose the…
A: Price control is a legislative instrument that is imposed by the state to regulate the market price…
Q: Which combination of the four graphs represents two events that could make equilibrium price rises,…
A: At the marketplace, when talking about the increase in price but the change in quantity is…
Q: An expectation of a lower price in the future will a) cause demand to stay the same but increase the…
A: Demand curve shows different combinations of price and quantity demanded. It is negatively sloped,…
Q: 22. If the value of the price clasticity of demand is -0.2, this means that a: a. 20 percent…
A: The formula for price elasticity of demand is:
Q: In France, where cheese is an important and traditional part of people’s meals, people eat about…
A: Price elasticity of demand is the responsiveness of quantity demanded to changes in price. It shows…
Q: Assume that the government raises taxes on restaurants serving foods high in trans fat and saturated…
A: In a market, government taxes on sellers will impact the supply decision of the producers, and the…
Q: d. Graph the demand and supply equation including the price floor? If you are to suggest of ways on…
A: Price floor refers to a type or price control practiced by the government of the country with the…
Q: Explain, using supply and demand analysis, why the price of sugar has been increasing recently. 1.…
A: The supply of a commodity or service is positively related to its price. A change in a factor that…
Q: A binding price floor causes Select one: O a. a shortage. O b. equilibrium price to fall. OC. a…
A: A binding price floor is set above the market price the government does this to manipulate the price…
Q: The price for widgets as a function of demand is: PD= 12- Wp where Wp is the quantity of widgets…
A: Given information:Demand Function, PD=12 - WDSupply Function, PS=2 + 4WS
Q: Suppose there is a soda tax to curb obesity. Whatshould a reduction in the soda tax do to the supply…
A: Most governments rely on taxes as their primary source of revenue. Simply put, they are a tax or…
Q: Studies have fixed the short-run price elasticity of demand for HPV vaccines at -0.25 . Suppose that…
A: Answer: Given, Elasticity of demand = -0.25 Percentage drop in the supply of vaccines = 20% Since…
Q: If a policymaker wants to raise revenue by taxinggoods while minimizing the deadweight losses,…
A: The tax is the unilateral payment from the people to the government. Tax is the main source of…
Q: A tax imposed on the sellers of a good will Select one: O a. raise the net price received by sellers…
A: A tax is levied by the government on goods and services. The tax imposed by the government raises…
Q: Q³ = 100 + 3P Qd = 400 – 2P %3D where Q® is the quantity supplied, Qd is the quantity demanded and P…
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…
Q: b. Suppose that the government imposes a $1.00 tax on each CFL sold. Assume that producers pay the…
A: Equilibrium takes place at a point where demand equals to supply. The calculations are done below-
Q: What is the reason(s) that causes a movement along a fixed demand curve (also called a change in…
A: (a) If a good's own price increases (decreases), its quantity demanded falls (rises), so there is an…
Q: "If we take government action to raise incomes, this will increase demand for all goods and…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: Which of the following is most likely to generate a surplus? O a price floor O a price ceiling O an…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: C) The government imposed a 0.5 tax on whiskey? what will happen to the supply curve . Shift left Ir…
A: The supply curve(S) shows "the different combinations of price(P) and quantity(Q) which is shown by…
Q: ne domestic demand (Qpp) for wheat in the United States is estimated to be Q00 1430-55P, nere the…
A: The aggregate demand is calculated by adding the domestic and foreign demand horizontally.
Q: A binding price floor causes Select one: O a. a surplus O b. excess demand O c. a shortage. O d.…
A: The question has been solved below.
Q: Skii resorts have an inelastic supply, and motorcycles have an clastic supply. Suppose that a rise…
A: Elasticity measures the responsiveness of quantity supplied to changes in the price level.Elastic…
Q: Studies have fixed the short-run price elasticity of demand for gasoline at the pump at -0.20.…
A: Price elasticity of demand is a measure which depicts how sensitive the quantity being demanded of a…
Q: The quantity demanded of salt decreases when the price of pepper increases. This is an example of *…
A: Elasticity of demand depicts how much consumer responds with the change in the price level.
Q: Subsidies on domestically produced sport utility vehicles cause a(n) in the supply of sport utility…
A: Subsidy is the financial aid given by the government to a particular section of society, production…
Q: An improvement in technology would cause a a. Leftward shift in the supply curve. O b. Movement up…
A: In the production process, the conditions and fluctuations that happen between demand and also the…
Q: When a tax is levied on a good, what happens to the market price and why? Select one: O a The market…
A: when the government intervenes the free market by imposing tax on the good, the tax increases the…
Q: Suppose you are given the following information: Qs =100+3P Qd =400–2P where Qs is the quantity…
A: Disclaimer: You have posted three parts, viz, (a), (b) and (c). Part (c) is not part of the main…
Q: An increase in government regulation would cause aggregate: O supply to shift to the left. O demand…
A: Aggregate demand is the value of total goods and services demanded in an economy in a given year.…
Q: Illustrate and explain how the market for milk in the US economy will maintain equilibrium over time…
A: Production of milk is high, yet the supply chains of the milk had been disrupted due to the pandemic…
Q: d. Suppose imposition of maximum price legislation reduced the price oil from the equilibrium price…
A: we have the formula for elasticity as elasticity = % change in quantity / % change in price the…
Q: California has higher income taxes than any other state in the United States. As a result, many…
A: An increase in taxes decreases disposable income and aggregate demand and a decrease in taxes…
Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the…
A: In economics, supply and demand refers to the relationship between the quantity of a commodity that…
Q: If national income increases, which of the following changes would occur first in the market for…
A: If national income increases, population of the country remaining unchanged, then per capita income…
Q: Which of the following causes for an increase in the supply of a product? O a. An increase in the…
A: The Law of supply refers to the direct or positive relationship between quantity supplied of a good…
An increase in..........will increase
supply
Select one:
O a. Taxes
O b. Income of consumers
.
Subsidies
O d
d. Number of consumers
Step by step
Solved in 2 steps
- QUESTION 27 When withdrawals are greater than injections, then O a. injections will rise and withdrawals will fall. O b. national income will fall. O c. injections will rise to equate withdrawals and national income will increase. O d. injections will fall and national income will fall.What are the three injection into the income-expenditure flow? O Government Spending, Consumer Spending. Exports O Goverment Spending. Investment, Exports : O Government Spending, Investment, ImportsThe percentage of an increase in income that is taxed is: O a regressive tax. O the marginal tax rate. O the average tax rate. O a flat tax.
- A change in a fixed tax willcause the consumptionschedule toa. become steeper.b. become flatter.c. shift in aparallel manner.d. remain fixed as theeconomy moves along theschedule.Give answer with explanationWhich payroll tax is imposed on both the employee and the employer? O a. federal unemployment tax b. state unemployment tax O c. federal income tax Od. FICA tax2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on commodity Mproduetion, it changes the price, quantity, and consumer speņding in which of the following ways? - Price Quantity Spending Irierease Decrease Decreàse. Therease Ancrease a. Increase- b. -Deerease Decrease Decrease Decrease - Decrease Iacrease
- Which curve shifts and in which direction when the following events occur in the tax accounting market? a. "It is almost tax day (April 15)!" O Neither curve changes. O Supply decreases. O Supply increases. O Demand decreases. Demand increases. b. A new software is developed that helps individuals file their taxes on their own. O Supply decreases. O Supply increases. Demand decreases. O Demand increases. O Neither curve changes.Which of the following is NOT a tool of fiscal policy. O taxes O government spending Onterest rates none of the above Question 2 Assume the economy is in a deep recession. The appropriate fiscal policy response would be to: raise taxes and raise govemment expenditures cut taxes and cut govermment expenditures raise taxes and cut government expenditures O cut taxes and increase government expenditures D Question 3 Crowding out refers to the fact that: Tax cuts will cause inflation O Tax cuts may result in higher interest rates which will "crowd out" business investment spending O increased government spending will crowd out spending on imports none of the aboveIf the supply curve is perfectly elastic, then this suggests that the O A. consumers pay a smaller portion of the excise tax. OB. consumer price does not change when an excise tax is added to the sale of a good OC. entire burden of the excise tax is borne by the sellers. O D. sellers absorb a portion of the excise tax. O E. entire burden of the excise tax is borne by the consumers.
- c. Compared to the short-run effect of an increase in the excise tax on gasoline, the long-run effect of an increase in the excise tax has a demanded of gasoline; it reduces consumption of gasoline by a tax revenue for the federal government. amount, and it generates a A. larger; smaller; smaller OB. smaller, larger; smaller C. smaller, smaller, larger OD. larger; larger; smaller effect on the quantityNet taxes are taxes paid minus O A. subsidies O B. consumption expenditure of households O C. capital expenditure D. cash benefits received from governmentsUse for questions 9-11 PRICE LEVEL Question 9 OOO OB in the short run and the long run. OD in the short run and the long run. Question 10 OB in the short run and A in the long run. Refer to Figure 3. A decrease in taxes would move the economy from B to D in the short run and C in the long run. O to B in the long run. B O C in the short run and the long run. O to C in the long run. LRAS Oto A in the long run. O to D in the long run. Question 11 C QUANTITY OF OUTPUT A Ostays at A. O moves to B. O moves to C. Refer to Figure 3. If the economy starts at C, a decrease in the money supply moves the economy O moves to D. AD₂ SRAS, SRAS₂ Refer to Figure 3. If the economy is at A and there is a increase in aggregate demand, in the short run the econom AD.
