« previous next »

Author Question: If the government places a 1500 tax on each hybrid car sold A) consumers will stop buying hybrid ... (Read 96 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
on: Jul 1, 2018
If the government places a 1500 tax on each hybrid car sold
 
  A) consumers will stop buying hybrid cars.
  B) the supply curve will shift left by up to 1500, depending on the price elasticity of demand.
  C) the supply curve will shift to the right by 1500.
  D) None of the above.

Question 2

In the presence of a negative externality generated by producing a good, a competitive market will produce more of that good than is socially optimal.
 
  What will be an ideal response?


T4T

  • Sr. Member
  • ****
  • Posts: 348
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

True. Firms in that market only consider their private costs and produce a quantity that equates price with the private marginal cost. Producers ignore the external costs to others. As a result, p = instead of p = MCs.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
Reply #2 on: Jul 1, 2018
Correct answers!


T4T

  • Sr. Member
  • ****
  • Posts: 348
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Why people don't stop smoking Why people don't stop smoking
Hybrid Animal (dolphin) Hybrid Animal (dolphin)
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Major Indian Cultures, AD 1–1500 Major Indian Cultures, AD 1–1500
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
The shut-off switch on a GM parallel hybrid truck is green because this system uses 42 volts instead ... The shut-off switch on a GM parallel hybrid truck is green because this system uses 42 volts instead ...
Video: Glycolysis Animation

For a complete list of videos, visit our video library