Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? pls draw a diagram
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Suppose the
Q = 2P. Suppose the government announces a per-unit tax of 1 on the price
of butter. Tax on butter can be seen as a ’fat tax’. What is the overall effect
of a fat tax on the consumers? pls draw a diagram
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- What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburger? Why or why not? Illustrate your answer with a graph.How would an increase in income for a normal good affect demand for the good? How would an increase in income for a normal good affect The demand curve for that good? Show graphically, i cantt figure out how to graph it
- 3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of gas is $4.00 per gallon. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a sedan 15 (Thousand of dollars) Quantity Demanded 563 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand 10 Price of Gas 4 (Dollars per gallon) 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) PRICE (Thousands of dollars per…The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…fl you know that Linda's consumption of potatoes fell from 200 pounds a year to 150 pounds a year when her income went up from $50,000 to $60,000 a year, you are able to calculate Linda's incomeelasticity of demand for potatoes. What is it? What do economists call this kind of a good?
- 1. 1pt. Mark appropriate circle for correct answer for matching term with its descriptions. Demand Demand Curve Quantity Demanded Law of Schedule Demand Definition A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices The amount of a good that buyers are willing and able to purchase at a given price A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at varlous prices The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises“A household’s decision about what quantity of a particular output, or product to demand depends on a number of factors.” Discuss the major factors affecting the demand. write in your own word as much as you canWhat is the difference between the supply andthe quantity supplied of a product, say milk? Explainin words and show the difference on a graph with thesupply curve for milk.
- Your friend Ginny really struggles with understanding graphs. She shows you the following illustration and asks for your help interpreting it: PRICE (Dollars per toothbrush) 10 9 8 7 6 2 1 0 O 0 Demand 1 D Slope: -1 Y-Intercept: 10 3 6 4 QUANTITY (Toothbrushes) 5 7 8 9 10 ? Fortunately, you recognize that the line on this graph is When your friend asks y represents the quantity of toothbrushes demanded at a price of $8 per toothbrush, you tell her the value represented by the letter X Y h valuePrice (dollars per can) 2.50 2.00 1.50 1.00 0.50 D 2 3 4 Quantity (cans of soda per day) The graph illustrates the demand curve for soda. After a rise in the price of a soda From $1.00 a can to $2.00 a can, the quantity of soda demanded A) decreases from 1 can to 0 cans a day. B) remains unchanged. C) increases from 0 cans to 2 cans a day. D) decreases from 2 cans to 0 cans a day.Question 35 To construct a market demand curve, for each unit of quantity, find the highest price a person in the market is willing to pay for that unit. O for each price, add up how many units each person in the market is able and willing to buy at that price. for each price, add up how many units people would want to buy at that price regardless of ability to pay. for each unit of quantity, add up how much each person in the market wants to pay for that unit.