Suppose 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 to the heightened demand for titanium.
Answer to relevant QuestionsSuppose instead the titanium market in Problem 2, with no tax but a price floor at $4/oz, suffers a reduction in supply because of dwindling titanium reserves. The new supply curve is P = 2 + Q. How does excess supply change ...Repeat Problem 9, but instead suppose the buyer pays the tax, demand is P = 28 - Q, and supply is P = 20.Originally PX is $120 and PY is $80. True or false: If PX increases by $18 and PY increases by $12, the new budget line will be shifted inward and parallel to the old budget line. Explain.Koop likes food but dislikes cigarette smoke. The more food he has, the more he would be willing to give up to achieve a given reduction in cigarette smoke. If food and cigarette smoke are the only two goods, draw Koop’s ...At your school’s fund- raising picnic, you pay for soft drinks with tickets purchased in advance—one ticket per bottle of soft drink. Tickets are available in sets of three types: Small: $3 for 3 tickets Medium: $4 for 5 ...
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