ECON111 Assignment (1 Viewer)

[jinghuang]

I'm afraid I have different thinking on the last part of question2. In this question, As the totol utility loss due to tax is 46 unit, but the total tax earns by government is 56. As the government will use the proceeds of the tax to finance public works, so I think the community is better off.

 

[jinghuang]

What do people think about 2.2 with the consumer spending?

I think the consumer spending depends on elasticity of the demand

 

[CrashOveride]

I think the consumer spending depends on elasticity of the demand

why? elasticity can tell u that it will change eg. price increase means consumer spending will fall...but by how much? elasticty cant tell you that ?

 

[CrashOveride]

I'm afraid I have different thinking on the last part of question2. In this question, As the totol utility loss due to tax is 46 unit, but the total tax earns by government is 56. As the government will use the proceeds of the tax to finance public works, so I think the community is better off.

How did u get the DWL as 46units ?? I got much lower.

 

[Sweet_Lemon]

the DWL is bout 6
Charity in kind = give poors anykind of *stuff* rather than money
Q4...NASTY LITTLE ****

 

[jinghuang]

How did u get the DWL as 46units ?? I got much lower.

the loss in consumer surplus is 15.5 and the loss in producer surplus is 30.5

 

[Sweet_Lemon]

the loss in consumer surplus is 15.5 and the loss in producer surplus is 30.5

tat's tax revenue govt redistributing into the community for watever work tat is..and 6 is the deadweight loss...as in the loss tat is inveitable to the socity without any meaning...where's our money GONE >.<

 

[Sweet_Lemon]

for Q4, i'm not sure if i'm thinking clearly... i guess, we not suppose to discuss each part separately rite? since it says that all three statements are profitable. But maybe i'm wrong >.<

 

[jinghuang]

tat's tax revenue govt redistributing into the community for watever work tat is..and 6 is the deadweight loss...as in the loss tat is inveitable to the socity without any meaning...where's our money GONE >.<

how did you work out ur DWL?

 

[Sweet_Lemon]

its the triangular area...the ones u said are consumer + supplier share of tax exclude DWL

 

[Sweet_Lemon]

I assumed you had to do it separately. But How?!

BANG..YEaH...HOW?! ANy suggestion anyone?

 

[jinghuang]

its the triangular area...the ones u said are consumer + supplier share of tax exclude DWL

I agree with u that it won't be better off, but i still jave different value of DWl.
the difference between the loss of total surplus and tax revenue is the DWL.
i think the loss in cosumer surplus is 0.5*14*(50/3-12)-0.5*17*(50/3-11)=-15.5
the loss in producer surplus is 0.5*12*(2+14)-0.5*11*(6+17)=-30.5
and total tax revenue is 4*14=56
so DWL=?

 

[jinghuang]

BTW, what's the answer for q1, c or d, anyone has idea?

 

[Sweet_Lemon]

stuck on 1d too....>.<

 

[pb]

well for 1 i got d....?
and to explain it, i was told that it was fixed costs spread over increasing production for economies of scale.... but i still couldnt do it.
... but i'd already done it as to increase total profit with fixed costs, you gotta increase total revenue, by increasing prices where demand is elastic.... but now im scared thats wrong cuz then i'd have to redo it!



also... help for q5? i have noooo idea how to do it :S

 

[~ForAGoodCause~]

yeh im having trouble with Q5 ....

does the monopoly charge at the ceiling price and produce at the original output? or charge at the ceiling price and produce at the demanded output level for that price? ...

 

[lethalaTraction]

Has anyone done Q4?? im really confused.. any help plssssss

 

[missemjay]

Isn't it obvious that he would want to irrigate all of his farm using all the water. Why do you need isoquants to show this? isnt this just common sense?
This assignment is so fricken hard!