Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 17, Problem 2WNG
(a)
To determine
Graphical illustration of a corrective tax that achieves the socially optimal output.
(b)
To determine
Graphical illustration of a corrective tax that moves the market output farther away from the socially optimal output.
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Q) The demand for bags of cement is Qd=1500-10p, supply is Qs=20, a tax of $5 per bag exists. A government project requires the purchases of 150 bags of cement.
What is the social opportunity cost of 150 bags of cement purchased for the project? use a diagram to explain.
Use the graph below to answer the following questions?
MC
M
Social Demand
Private Demand
V
Quantity (units/day)
What is the socially optimal price for this market? [ Select]
What is the socially optimal quantity for this market? [Select]
What price will be the equilibrium price in this market? [Select ]
What quantity will be the equilibrium quantity in this market? [Select]
How can the government achieve the socially optimal quantity in equilibrium?
[ Select ]
Price ($/unit)
Use the attached image to answer the next three questions.
What price and quantity will the firm in the diagram above produce?
What’s the socially-optimal price and quantity?
In the absence of government intervention, will this firm produce too much or too little?
Chapter 17 Solutions
Microeconomics
Ch. 17.1 - Prob. 1STCh. 17.1 - Prob. 2STCh. 17.2 - Prob. 1STCh. 17.2 - Prob. 2STCh. 17.2 - Prob. 3STCh. 17.2 - Prob. 4STCh. 17.3 - Prob. 1STCh. 17.3 - Prob. 2STCh. 17.3 - Prob. 3STCh. 17.4 - Prob. 1ST
Ch. 17.4 - Prob. 2STCh. 17.4 - Prob. 3STCh. 17.5 - Prob. 1STCh. 17.5 - Prob. 2STCh. 17.5 - Prob. 3STCh. 17 - Prob. 1QPCh. 17 - Prob. 2QPCh. 17 - Prob. 3QPCh. 17 - Prob. 4QPCh. 17 - Prob. 5QPCh. 17 - Prob. 6QPCh. 17 - Prob. 7QPCh. 17 - Prob. 8QPCh. 17 - Prob. 9QPCh. 17 - Prob. 10QPCh. 17 - Prob. 11QPCh. 17 - Prob. 12QPCh. 17 - Economists sometimes shock noneconomists by...Ch. 17 - Prob. 14QPCh. 17 - Prob. 15QPCh. 17 - Prob. 1WNGCh. 17 - Prob. 2WNGCh. 17 - Prob. 3WNG
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