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How China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal and gasoline.
Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change, and explain why the outcome is inefficient.
Explain how the market for gasoline would react to this price ceiling if the oil-producing nations increased production and drove equilibrium price of gasoline.
What is the government's tax revenue? On a graph, show the excess burden of this tax. Is this tax efficient?
In 2002, New York State raised the cigarette tax by 39¢ to $1.50 a pack. Is this tax on cigarettes a progressive, regressive, or proportional tax?
Draw a graph to show the effects of the $3 tax on the buyer's price, the seller's price, the quantity of cigarettes bought, the tax revenue, the consumer surplu
Explain the effect of this tax cut on the price of gasoline and the quantity bought if, at the same time, the oil-producing nations increase production.
What determines by how much Starbucks will raise its price? How will the quantity of coffee bought in coffee shops change? Will this tax raise much revenue?
Who will pay most of the tax increase: the buyer or the seller? Will the tax increase halve the quantity of sunscreen and sunglasses bought?
Explain how the market for gasoline would react to this price ceiling if a global shortage of oil sent the equilibrium price of gasoline to $3.50 a gallon.
Concerned about the political fallout from rising gas prices. Under what conditions would the price ceiling create lines at the pumps?
How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change?
On a graph of the market for low-skilled labor, show the effect of the $26 a week increase in the minimum wage on employment of low-skilled labor.
Explain the effects of the higher minimum wage on the workers' surplus and the firms' surplus. Has the labor market become more efficient or less efficient?
Draw a graph to illustrate the soybean market when the soybean price was low. Show the quantity of soybeans produced, the subsidy farmers received, and the dead
In the market for corn with a price support, explain why the corn price has risen and ended up being too high to "trigger payouts."
Explain the effect of this tax cut on the price of gasoline and the quantity bought if, at the same time, a global shortage of oil sends the price up.
Sugary drinks cost California $41 billion a year in medical expenses. On the basis of what principle would this tax be fair?
Would a tax per mile driven be more efficient or less efficient than a tax per gallon of gasoline? Explain your answer.
What assumptions about the elasticities of demand and supply for high-wage labor and capital might be consistent with this assessment?
Calculate the marginal tax rates for bakers, gas pump attendants, and copy shop workers. Is this tax progressive or regressive?
Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.
The supply of roses in US States is made up of U.S.-grown roses and imported roses. Draw a graph to illustrate U.S. rose market with free international trade.
Who in the United States loses from this trade in roses and would lobby for a restriction on the quantity of imported roses?
Show on your graph the consumer surplus that is redistributed to producers and importers and also the deadweight loss created by the import quota.