I need help on improving these sample questions that are based on efficiency, equity, and the role of government 1. When the firms in an industry

I need help on improving these sample questions that are based on efficiency, equity, and the role of government

1.    When the firms in an industry produce good A, costs are imposed on people who don’tproduce or consume that good.

  1. Suppose the government is considering taxing good A with a sales tax levied on each unit sold. How would this tax affect:

(i)           The price that consumers pay for good A

Sample Answer

The tax will increase the cost of production. This will decrease the supply of the good and increase the market price

(ii)          The quantity of good A produced

Sample Answer

The equilibrium quantity decreased (see graph in 1Ai).

(iii)         The total revenues received after taxes by firms that produce good A

Sample Answer

Can’t say for certain. It depends on whether the demand is elastic or inelastic.

  1. Compare and contrast the levels of economic efficiency achieved after this tax is imposed with the levels of economic efficiency achieved if good A were produced in an unregulated market.

Sample Answer

Consumer surplus is smaller with the tax. But fewer additional costs are imposed on third parties, so the net effect on all consumers is unclear

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10