Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Last year, Berkeley, CA passed a tax on yoga classes of $4 per yoga class. Suppose that the pre-tax demand for yoga classes is QD = 2000 – 100P, and that the pre-tax supply of yoga classes is QS = 300P –200.
(a) Calculate the initial equilibrium price and quantity.
(b) Calculate the elasticity of demand (ED) and elasticity of supply (ES) using calculus at the initial equilibrium price and quantity from Part (a).
(c) Use your answer from Part (b) to calculate the tax borne by consumers, as a percentage of the overalltax.
(d) Use your answer from Part (b) to calculate the tax borne by firms, as a percentage of the overall tax.
(e) Determine the price that buyers will pay for yoga classes after the tax (PB). Determine the price thatfirms will receive for yoga classes after the tax (PS).
(f) Calculate the deadweight loss (DWL) associated with this tax.
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.
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
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
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
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
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