Problem regarding to tax wedges in equilibrium

In equilibrium, a tax upon a good tends to because of the: (1) supply to exceed the demand. (2) quantity supplied to exceed the quantity demanded. (3) demand prices of consumers to exceed the supply prices of sellers. (4) competitive firm to recoup its profits by increasing production. (5) speculators and arbitragers to hedge their financial investments.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Opinion of Frank Knight about Risk and

Opinion of Frank Knight, about economic profits is: (1) rewards for bearing uncertainty. (2) easily capitalized for firms possessing monopoly power. (3) rewards for innovation. (4) easily predicted when competent economic forecasting is employed. (5) equal to accounti

Q : Monopolistic competitive firm in normal

This monopolistically competitive firm in illustrated figure produces Q units as well as experiences: (1) economic profits equal to 0cbQ. (2) economic losses equal to cpab. (3) more than normal accounting profits. (4) marginal cost in excess of averag

Q : Guidelines for Estimating Times and

Guidelines for Estimating Times and Costs: Determine responsibilities. Use many people to estimate. Base estimates on general conditions. Select time units, and be consistent in their use. Indepen

Q : Maximum negatively-sloped demand curve

The total revenue of a firm which faces a negatively-sloped demand curve: (w) is at a maximum where marginal revenue is zero. (x) declines while average revenue falls as output grows. (y) rises at an increasing rate over the output range plagued throu

Q : Rain affects play The ABC industry in

The ABC industry in UK had poor sales in the summer of 2007. This practice explores why, employing economic analysis. It considers how the forces in the direction of an equilibrium price might affect a firm.

Q : What is fiscal deficit Fiscal deficit :

Fiscal deficit: When TE (RE + CE) > TR (RR + CR) of the government, excluding borrowing. It is termed as fiscal deficit.

Q : Ratio of percentage changes in quantity

The ratio of the percentage change within the quantity of beef sold over the percentage change within the price of pork is: (1) price elasticity of demand for beef. (2) price elasticity of demand for pork. (3) income elasticity of dem

Q : Problem regarding Substitution of goods

When tuna fish ice cream and licorice gummy bears are substitutes, then: (1) Decline in the price of licorice gummy bears raises the demand for tuna fish ice-cream. (2) The demand for tuna fish ice-cream is independent of price of licorice gummy bears. (3) Consuming m

Q : Price elasticity of demand coefficient

A price elasticity of demand coefficient of infinity implies that: (w) the demand curve is horizontal. (x) each 1 percent price hike elicits a 1 percent increase in revenue. (y) total revenue increases proportionally as a firm increases its price. (z)

Q : Determine equilibrium by Price Ceilings

Between the predictable results while government sets a maximum price below equilibrium are: (1) shortages. (2) queues. (3) black markets and corruption. (4) economic inefficiency. (5) All of the above.

Discover Q & A

Leading Solution Library

Avail More Than 1427213 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930362
Asked

3,689

Active Tutors

1427213

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment