A draw a supply and demand showing a market with an initial, Ask an Expert

Economics

a) Draw a supply and demand showing a market with an initial equilibrium price of $2, and an external cost of 30 cents per unit. Suppose the government imposes a corrective tax of 30 cents per unit that raises the equilibrium price by 10%. Show the new supply / social cost curve. Does the quantity rise or fall?

b) Circle the right answer: With positive externalities, an unregulated market will (under / over) provide the good, and the solution is to (tax / subsidize) the good.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92202313

Have any Question?Write your Review or question?

Related Questions in Business Economics

Suppose the production function for a firm is given by q4l

Suppose the production function for a firm is given by: q=4L +2K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK).

Describe 2 variables a government will look at to predict

Describe 2 variables a government will look at to predict where the economy will be in the next six months.

Let x denote the number of spots on a single throw of a

Let X denote the number of spots on a single throw of a fair 6-sided die. Find the mean, variance, and standard deviation of X. If you can, relate the mean and variance to the mean and variance. the possible values on th ...

One box has 4 cards in it of the same suit numbered 2 4 6

One box has 4 cards in it of the same suit numbered 2, 4, 6, and 9. A second box contains 3 cards again of the same suit numbered 2, 3 and 6. One card is drawn at random from each box. Draw the tree diagram showing the c ...

Find the mean median and mode of the data if possible if

Find the mean, median, and mode of the data, if possible. If any of these measures cannot be found or a measure does not represent the center of the data, explain why . a. Concert Tickets The number of concert tickets p ...

Trade restrictions can be implemented by tariffs and quotas

Trade restrictions can be implemented by tariffs and quotas acting on price and quantity respectively or by non-tariff barriers (NTBs). Explain what constitute NTBs ranging from industrial policy, technical barriers, sub ...

Betsy ross owns 921 shares in the hanson fabrics company

Betsy Ross owns 921 shares in the Hanson Fabrics Company. There are 16 directors to be elected, and 32,500 shares outstanding. The firm has adopted cumulative voting. a. How many total votes can be cast? (Do not round i ...

Would it ever be rational for a firm to retain an employee

Would it ever be rational for a firm to retain an employee whose current marginal revenue product is less than her current wage? Explain.

In a class there are 7 girls and 5 boys the median age of

In a class there are 7 girls and 5 boys. The median age of the 7 girls is 12 and the median age of the 5 boys is 14. Additionally, you know that there are 3 girls with age greater than 14 and 2 boys with age less than 12 ...

Here is some questions need helphow will each of the

Here is some questions need help How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in the given market; that is, do price and quantity increase or decrease, ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert