(Advanced analysis) Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q, where P is price and Q is quantity expressed in units of 100
After an excise tax is imposed on the product, the supply equation is P = 3 + .4Q. Refer to the given information. The efficiency loss of this tax is:
A. $125.00.
B. $62.50.
C. $87.50.
D. $1.00.
Answer: B
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If income doubles and the quantity demanded of good X more than doubles, then good X can be described as a
a. substitute good. b. complement good. c. necessity. d. luxury.
The short-run average variable cost curve
a. is always downward-sloping b. starts at the origin and always slopes upward c. starts above the origin and always slopes upward d. is a horizontal line intersecting the vertical axis e. slopes downward at low rates of output, then slopes upward at higher rates of output
Using your table, calculate the total amount of income and consumption and deduce the value of the national income multiplier
What will be an ideal response?
The amount of a good that must be given up to produce another good is the concept of:
A. scarcity. B. specialization. C. opportunity cost. D. efficiency.