In the market for titanium described in Problem 1 (with no tax), suppose that a price floor of $4/oz results in sales of only 2 tons/yr (with no tax). Describe a transaction that will make some buyers and sellers better off without harming others.
Answer to relevant QuestionsSuppose the titanium market in Problem 1, with a tax of $2/oz, experiences growth in the demand for titanium because of newfound medical uses. The new demand curve is P = 8 - Q. Find the change in government tax revenue due ...Supply is P = 4Q, while demand is P = 20, where P is price in dollars per unit and Q is units of output per week. a. Find the equilibrium price and quantity (using both algebra and a graph). b. If sellers must pay a tax of T ...Same as Problem 1, except now the price for every pound after 10 lb/wk is $4/ lb.Eve likes apples but doesn’t care about pears. If apples and pears are the only two goods available, draw her indifference curves.Your local telephone company has offered you a choice between the following billing plans: Plan A: Pay $0.05 per call. Plan B: Pay an initial $2/wk, which allows you up to 30 calls per week at no charge. Any calls over 30/wk ...
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