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題目
The domestic supply demand curves for hula beans are as follows:
Supply: P = 50 + Q
Demand: P = 200 -2Q
Where P is the price in cents per pound and Q is the quantity in millions of
pounds. The U.S. is a small producer in the world hula bean market, where the
current price (which will not be affected by anything we do) is 60 cents per
pound. Congress is considering a tariff of 40 cents per pound.
(1)Find the domestic price of hula beans that will result if the tariff is
imposed.
(2) Compute the dollar gain or loss to domestic consumers, domestic
producers, and government revenue from tariff.
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Suppose the income elasticity of demand for food is 0.5 and the price
elasticity of demand is -1.0. Suppose also that Felicia spends $10,000 a year
on food, the price of food is $2, and that her income is $25,000.
(1) If a sales tax on food caused the price of food to increase to $2.50,
what would happen to her consumption of food?
(2) Suppose that Felicia gets a tax rebate of $2500 to ease the effect of
sales tax. What would her consumption of food be now?
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03/24 23:59, , 1F
03/24 23:59, 1F
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