ECON 1B03 Study Guide - Final Guide: Demand Curve, Economic Surplus, Deadweight Loss

35 views4 pages
Shanghaibalcony1234 and 37744 others unlocked
ECON 1B03 Full Course Notes
46
ECON 1B03 Full Course Notes
Verified Note
46 documents

Document Summary

Determinants of the dwl due to tax depends on how much quantity supplied and quantity demanded respond to changes in price price elasticity of supply and demand. Inelastic supply supply curve is steep compared to demand curve. More responses pulls back q even more, area would get larger and larger. Dwl the more the curve of supply and increases, increases elastic demand, the greater the. More responsive = less q we want to trade because of tax so dwl increases the greater the elasticity of demand and supply, the larger the decline in equilibrium quantity and the greater the dwl of a tax. Working with equations the market for hamburgers is represented by the following equations for demand and supply: qd = 20 2p qs = p 1. Suppose a tax on trans fats results in a tax per hamburger for hamburger firms: the new supply curve is qs = p-4.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

Related Questions