Business College

For the next 3 questions, use the following scenario: The graph below depicts the market for widgets. The government has imposed a tax on the production of widgets. Before the tax, the equilibrium price was $20 and the equilibrium quantity was 4. After the tax, the quantity is 2, the price the consumers face is $28, and the price the producers receive is $12.





Which of the following areas represents government revenue raised by the tax?



Group of answer choices

F

The sum of C and E

The sum of B and D

A

Flag question: Question 22
Question 224 pts
Calculate the amount of deadweight loss as a result of the tax.
Group of answer choices

16

32

12

20

Flag question: Question 23
Question 234 pts
Which of the following areas represents consumer surplus before the tax?
Group of answer choices

The sum of D, E, and F

A

The sum of A, B, and C

F

For The Next 3 Questions, Use The Following Scenario: The Graph Below Depicts The Market For Widgets.

Answers

Answer 1

Q21) The area that represents government revenue raised by the tax is the sum of B and D, Hence, Option (C) is correct.

The government revenue is the part between what the consumer pays and what the producer gets and in the graph that portion is the B&D

Q22) The amount of dead-weight loss is $16, Hence, option (A) is correct.

To calculate the amount of deadweight loss as a result of the tax, we need to find the triangle that represents the loss of consumer and producer surplus due to the reduction in quantity. The deadweight loss is equal to half the base of the triangle multiplied by the height.

Given that the original equilibrium quantity was 4 and the new quantity after the tax is 2, the reduction in quantity is 4 - 2 = 2.

The base of the triangle is 2 (quantity reduction), and the height can be calculated as the difference between the price consumers faces ($28) and the price producers receive ($12), which is 28 - 12 = 16.

The deadweight loss = (1/2) * base * height = (1/2) * 2 * 16 = 16.

Therefore, the amount of deadweight loss as a result of the tax is $16.

Q23) The area that represents consumer surplus before the tax is the sum of A, B, and C. Hence, Option (C) is correct

Consumer surplus refers to the portion above the equilibrium price or the price and below the demand curve.

Before taxation, this portion is A, B & C.

Thus, Q21) Option (C) is correct, Q22) Option (A) is correct,  Option (C) is correct

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Related Questions

If I have bought 4 books and 2 pens plus tax each (you have to add the tax for each book and pen): $12.99, $12.99, $11.99, $7.99, $3.99, and $5.99. I gave them $60.00. The cashier gave me 32 cents back. Did the cashier give me the right amount of change back?

Answers

Answer:

To determine if the cashier gave you the correct amount of change back, we need to calculate the total cost of the books and pens, including tax, and compare it to the amount you paid.

The cost of the books with tax is:

$12.99 + $12.99 + $11.99 + $7.99 = $45.96

The cost of the pens with tax is:

$3.99 + $5.99 = $9.98

The total cost of the books and pens with tax is:

$45.96 + $9.98 = $55.94

You gave the cashier $60.00, and the cashier gave you 32 cents back.

So the amount you received back from the cashier is:

$60.00 - $55.94 = $4.06

The correct change you should have received is $4.06. Since the cashier gave you 32 cents back, it appears that the cashier did not give you the correct amount of change. You should have received $4.06 instead of 32 cents.

Therefore, it seems that the cashier made an error and did not give you the right amount of change back.

ACTIVITY 2 Consider the department that you work in. Write down the learning materials that you use regularly (for instance, this could include policy documents and guidelines and instruction manuals). Discuss how these materials are managed and who is responsible for this management?​

Answers

My go-to reference books for learning include management of  Manuals, syllabi; slides from classes, internet videos, resources, and tutorials online

The lecturer and/or a school manager are normally in charge of managing these resources by management. They may occasionally be run by a divisional or school librarian. It is an obligation of every professor to update and care for the learning resources in accordance with their own standards and instructions, which are normally provided for students to access and use. This will have various documents to take in with the purpose of management.

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Evelyn Vollmer orally agreed to loan Danny Lang $150,000 to make an investment in a local nightclub. The loan was to be repaid from the profits received from the investment. Their agreement was never memorialized in writing, however. Eighteen months later, Lang had paid only $15,000 on the loan from the profits from the business. Vollmer filed a lawsuit alleging breach of contract. Using the information presented in the chapter, answer the following questions.

Lang claimed that repayment of the loan would “almost certainly” take over a year and that his agreement with Vollmer was therefore unenforceable because it was not in writing. Is he correct? Explain.

Suppose that a week after Vollmer gave Lang the funds, she sent him an e-mail containing the terms of their loan agreement with her named typed at the bottom. Lang did not respond to the e-mail. Is this sufficient as a writing under the Statute of Frauds?

Assume that at trial the court finds that the contract falls within the Statute of Frauds. Further assume that the state in which the court sits recognizes every exception to the Statute of Frauds discussed in the chapter. What exception provides Vollmer with the best chance of enforcing the oral contract in this situation?

Suppose that at trial, Lang never raises the argument that the parties’ agreement violates the Statute of Frauds, and the court rules in favor of Vollmer. Then Lang appeals and raises the Statute of Frauds for the first time. What exception can Vollmer now argue?

Answers

Lang's claim that repayment of the loan would take over a year and therefore the agreement is unenforceable because it was not in writing is incorrect.

Answers to the aforementioned questions

1. Lang's claim that repayment of the loan would take over a year and therefore the agreement is unenforceable because it was not in writing is incorrect.

The requirement for a written agreement under the Statute of Frauds varies from jurisdiction to jurisdiction, but typically contracts that cannot be performed within one year are required to be in writing. In t

2. An e-mail containing the terms of the loan agreement, even with Vollmer's name at the bottom, may not be sufficient as a writing under the Statute of Frauds in some jurisdictions.

The requirements for a writing can vary, but generally, a writing must be signed by the party against whom enforcement is sought. Since Lang did not respond to the e-mail and did not provide his own signature, it may not satisfy the writing requirement under the Statute of Frauds.

3. Assuming the contract falls within the Statute of Frauds and the state recognizes exceptions to the Statute of Frauds, the best chance for Vollmer to enforce the oral contract would be the partial performance exception.

The partial performance exception allows for the enforcement of an oral contract if one party has already partially performed their obligations under the contract.

4. If Lang raises the Statute of Frauds for the first time on appeal, Vollmer can argue the doctrine of promissory estoppel as an exception. Promissory estoppel is a legal doctrine that prevents a party from using the Statute of Frauds as a defense if the other party has relied on the oral agreement to their detriment.

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is a document that contains questions or blank spaces where the appilicant provides information

Answers

A job application is a document that contains questions or blank spaces where the applicant provides information.

Job application is used to choose the ideal applicant for a certain position inside the organization. The majority of businesses offer these forms upon asking for them, at which time it is the applicant's obligation to fill it out and submit it to the firm for review.

Credentials for a job are highlighted, including education, experience, abilities, and other pertinent data. Employers evaluate resumes to identify possible interviewees for certain jobs.

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