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Are current waiting lists for surgery and other

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Are current waiting lists for surgery and other medical care the result of price controls on medical procedures??? Price controls are not necessarily bad, but they need to be justified on the basis of some form of market failure because we know that they impose efficiency losses on those who are forced out of the market! Chapter 2: Slide 18 The implications of taxation Tax per unit sold (gas, alcoholic beverages, etc.) Who transfers the tax to the government? Who effectively carries the tax burden? (tax incidence) FIGURE 2-15 Equilibrium Prices and Quantities When a Tax of T = $10/Unit Is Levied on the Seller The tax causes a reduction in equilibrium quantity from Q * to Q . The new price paid by the buyer rises from P * to P . The new price received by the seller falls from P* to P – 10.
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Chapter 2: Slide 19 The implications of taxation Example 2: buyer transfers the tax (examples?) Does it matter who makes the transfer to the government? FIGURE 2-17 Equilibrium Prices and Quantities After Imposition of a Tax of T = $10/Unit Paid by the Buyer The tax causes a reduction in equilibrium quantity from Q * to Q . The new price paid by the buyer rises from P * to P + 10. The new price received by the seller falls from P* to P. Chapter 2: Slide 20 The implications of taxation Example 2: buyer transfers the tax (examples?) Answer: No, it does not matter FIGURE 2-18 A Tax on the Buyer Leads to the Same Outcome as a Tax on the Seller The price received by sellers (net of the tax), the price paid by buyers (including tax), and the equilibrium quantity will all be the same when the tax is collected from sellers (panel a ) as when it is collected from buyers (panel b ). Chapter 2: Slide 21 Conclusion Questions How did markets arise in the first place? Answer: Ch.16.1 We assume perfectly competitive markets. Under which circumstances is it reasonable to assume market participants take prices as given? Answer: Ch.11.
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