hwk3sec6

hwk3sec6 - Excess Burden $61.00 $61.00 $0 $5 $10 $15 $20...

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Experiment 3, Section 6 Problem 3.1 Part a) rise, less than Part b) fall, less than Part c) 165 Part d) more than Problem 3.2 Part a) fall, less than Part b) rise, less than Part c) 165 Part d) more than Problem 3.3 Table 3.7: Effects of a Sales Tax on Suppliers $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 0 5 10 15 20 25 30 35 40 Bushels of Apples Price of Apples
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Problem 3.4 Figure 3.8: Effect of a Sales Tax on Demanders In this exercise, the competitive equilibrium price may fall in a discrete range. If that occurs, the mean price in the table below presents that range, and the profits to buyers and sellers are calculated using the midpoint of that range. Problem 3.5 Table 3.8 Competitive Equilibrium Predictions No Tax Sellers Pay Tax Buyers Pay Tax (Session 1) (Session 2) (Session 3) Mean Price $23.00 $30-$33 $15-$18 Number of Transactions 18 10 10 Total Profit of Buyers $201.00 $80.00 $80.00 Total Profits of Sellers $170.00 $80.00 $80.00 Total Taxes Collected $0.00 $150.00 $150.00 Total of Profits Plus Taxes $371.00 $310.00 $310.00
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Unformatted text preview: Excess Burden $61.00 $61.00 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 5 10 15 20 25 30 35 40 Bushels of Apples Price of Apples y Problem 3.6 Table 3.9 Comparing Theory and Experiment Sellers Pa Sellers Pay Tax Buyers Pay Tax (Session 3) (Session 2) Cpmp. Exp. Comp. Exp Prediction Outcome Prediction Outcome Mean Price $30-$33 $31.09 $15-$18 $15.73 Number of Transactions 10 11 10 11 Total Profit of Buyers $80.00 $83.00 $80.00 $81.99 Total Profit of Sellers $80.00 $74.00 $80.00 $55.01 Total Taxes Collected $150.00 $165.00 $150.00 $165.00 Total of Profits Plus Taxes $310.00 $322.00 $310.00 $302.00 Excess Burden $61.00 $24.00 $61.00 $44.00 Problem 3.7 Part a). Decrease price to $30. Part b). No effect. Part c). No effect. Part d). Decrease profits by $20,000 Part e). No excess burden Problem 3.8 Part a). No effect. Part b). None. Part c). Increase price by $20. Part d). None....
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hwk3sec6 - Excess Burden $61.00 $61.00 $0 $5 $10 $15 $20...

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