Time for a long run. Post a photo of your answer below. Please do not post a link to a file I then have to open up – that extra step really slows things down when you have dozens of answers to look at.
As you know, worksheets are not directly graded – but are critical to mastering the content. They also do count heavily toward participation. Answers are provided upon submission of your work.
1. Let’s think about a per unit production subsidy. Start with an initial equilibrium price of $5 and quantity of 100 million. Now provide producers with a $1 per unit subsidy. Shade in (the cost of) the subsidy, make up numbers for the new quantity exchanged, the price consumers face (Pc) and the price producers get (Pp). Ideally you can do this without simply copying it from the book… try it over several days until you can.
2. The goal of a subsidy to labor (such as the EITC) is to both raise wages and encourage employment to support low-income families. How does the wage elasticity of demand affect the success of achieving these goals? (That is, are the goals better met if demand for labor is elastic or inelastic?) Illustrate your answer by showing a wage subsidy in two scenarios: relatively inelastic demand for labor and relatively elastic demand for labor. Assume an initial equilibrium of $10 per hour and 100 mn hours of labor employed. Also, keep in mind that the supply curve in the labor market reflects workers (supplying labor) while the demand curve reflects firms (demanding labor).
3. Assume a $1 / pack excise tax is placed on the producers of grapes. This causes the price to rise from $3 / pack to $3.80 / pack and causes quantity demanded to fall from 470 million packs per year to 400 million packs per year.
Illustrate this in a S&D graph
What price do the producers get after the tax?
What is the tax revenue for the government? (answer in $ and make a bold line around it)
What is the price elasticity of demand for grapes? (you will need a calculator)
Shade in the lost consumer surplus.
Since all our papers are written from scratch, the papers we submit are plagiarism free and we strictly adhere to lecturer’s instructions. Our writers are highly qualified from all over the world and include graduates and professors from most of the largest and known universities in the world. Once you have assigned us your assignment, we select the most qualified and reliable writer to handle your assignment.
Unlike other writing companies, we encourage clients to draw back their money at any stage of the writing process if they experience any uncertainties with the quality of generated content. However, you will hardly have to make this decision because of our business approach that suits your needs.
We have an advanced plagiarism-detection system that flags any work that fails to meet the required academic expectations. Our company thrives in honesty, and as such, you will be guaranteed to achieve a paper that meets your expectations.
At homeworkpaper.org we have online agents that you can chat with to have your assignment taken care of with the little remaining time. Also, we have professional academic writers who will work on your assignment providing you with a high-quality paper at the same time. We can take care of your urgent assignments in less than 5 hours.
We uphold confidentiality and privacy through our interactions with clients, an aspect that has enhanced our relationship with prospective customers seeking for assignment help. We do not disclose your information with third-parties; neither do we share your work with any other person apart from you.
We do not resell previously-done tasks delivered to other clients. When we deliver orders to our clients, we safeguard their privacy and confidentiality by ensuring the third party does not access the work. By writing the papers from scratch, we have managed to maintain a certain level of originality, which defines our business model. Our qualified editors proofread all submitted work to eliminate mistakes that can interfere with the credibility of the assignment.