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Anyone good with Micro Econ/Economics?

Discussion in 'BlackHat Lounge' started by chocolatemonkey, Mar 2, 2011.

  1. chocolatemonkey

    chocolatemonkey Junior Member

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    I can't figure this out and all the tutors for micro econ aren't working today...

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    1. (6 points) Using the table above

    a. (3 points) If a tax of $8 per unit is imposed, what will be the new equilibrium price paid by consumers? What will be the new equilibrium price received by producers? What will be the new equilibrium quantity?




    b. (1 point) How much will be collected in tax revenue?



    c. (2 points) At the equilibrium in part b, show who bears the larger burden of the tax.



    2 (4 points) Using the table above for a market unencumbered by taxes,



    a. (2 points) determine the market price and output if a quota of 150 is implemented.



    b. (2 points) determine the market price and output if a quota of 300 is implemented.





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    What do they mean by quota?


    I could paypal someone some cash to help me with this... I'm stuck in mud with this...
     
    Last edited: Mar 2, 2011
  2. meathead1234

    meathead1234 Moderator Staff Member Moderator Premium Member

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    A quota would be a limit/restriction on production in this case.

    Haven't done economics for 5 years so can't remember all of that other stuff I'm afraid (especially after a few beers!)