Answer to Question #61218 in Other Economics for Serena-May Matthews

Question #61218
1.Explain what will happen to consumer and producer surplus and deadweight loss if the government imposes a tax on sellers for each radio they produce in order to raise government income? Include in your answer an explanation of the three concepts – consumer surplus, producer surplus and deadweight loss. (With graph)(300words) 2.a. There has been a breakthrough in the manufacturing of solar-powered motor vehicles that will substantially reduce their costs of production. Use demand and supply curves to illustrate what will happen to: i) the equilibrium price and quantity of solar-powered motor vehicles. ii) the equilibrium price and quantity of conventional motor vehicles. b. In an attempt to increase the use of solar-powered motor vehicles the government decides to set a minimum price for solar-powered vehicles that is below the market price. Do you think this is a good idea? Explain your decision using graphs.
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Expert's answer
2016-08-10T09:20:02-0400

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