QUANTITATIVE ECONOMICS

More documents

Recommendations

Info

Now you have a go! Question 3.1 In the market for chocolate bars, the demand function is Q D = 900 – 100P and the supply function is Q S = 200P, where price is given in $ per chocolate bar and quantity is given in thousands of chocolate bars per month. The government then imposes a specific tax of $1.50 on chocolate bars, to discourage their sales. i. On the graph below, draw the original demand and supply curves and indicate equilibrium. Produced by Ian Dorton & Jocelyn Blink Page 18
ii. iii. Calculate the new supply function, after the tax, draw it on the diagram and indicate the new equilibrium price and quantity. Calculate the change in consumer expenditure. iv. Calculate the change in producer revenue. v. Calculate the government tax revenue. vi. Calculate the loss of consumer surplus. vii. Calculate the loss of producer surplus. Calculate the effects of the imposition of a specific tax on the market (on price, quantity, consumer expenditure, producer revenue, government revenue, consumer surplus and producer surplus). Step 1 Calculate the original equilibrium price and quantity from the demand and supply functions. E.g. If the demand and supply functions for a product are Q D = 2000 – 200P and Q S = -400 + 400P. Then equilibrium can be calculated by setting the equations against each other, so that: Q D = Q S , 2000 – 200P = -400 + 400P 2400 = 600P P = $4 Produced by Ian Dorton & Jocelyn Blink Page 19
Page 1 and 2: IB HIGHER LEVEL ECONOMICS QUANTITAT
Page 3 and 4: Topic 1 - Linear Demand and Supply
Page 5 and 6: Have you fully labelled the axes Ex
Page 7 and 8: Now you have a go! Question 1.2 On
Page 9 and 10: Question 1.5 On the graphs below, p
Page 11 and 12: Topic 2 - Elasticities Price Elasti
Page 13 and 14: Cross Elasticity of Demand (XED) Yo
Page 15 and 16: You need to be able to: Price Elast
Page 17: Q S = - 400 + 400(P - 0.75) Q S = -
Page 21 and 22: Question 3.2 In the market for choc
Page 23 and 24: Q S = - 400 + (400xP) + (400 x 0.75
Page 25 and 26: ii. iii. Calculate the new supply f
Page 27 and 28: Now you have a go! Question 3.4 In
Page 29 and 30: The quantity demanded is now 1,400
Page 31 and 32: PRICE FLOORS Calculate possible eff
Page 33 and 34: Topic 5 - Calculating costs, revenu
Page 35 and 36: In the table above, the TFC of prod
Page 37 and 38: In the table above, the total reven
Page 39 and 40: Question 5.7 From the above diagram
Page 41 and 42: In the diagram below, MR is at zero
Page 43 and 44: Now you have a go!! Question 11.1 U
Page 45 and 46: Step 2 Identify the country with th
Page 47 and 48: Topic 13 - Tariffs, quotas, and sub
Page 49 and 50: 7. Calculate the fall in consumer s
Page 51 and 52: 2. Identify the level of domestic p
Page 53 and 54: Question 13.2 In the market for bot
Page 55 and 56: Topic 14 - Exchange rates You need
Page 57 and 58: Calculating the price of a good in
Page 59 and 60: Balance of Trade in services will b
Page 61: Topic 16 - Terms of Trade You need

QUANTITATIVE ECONOMICS

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?