Applying Request Capacities.


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Applying Request Capacities Forcing an Assessment Value Buyers Pay S P o D Q o Q An expense $t is collected on offers of an item Forcing a Duty Value Buyers Pay S P o D Q o Q The supply bend shifts up by $t. Why? The value suppliers get is $t not as much as buyers pay Forcing a Duty
Transcripts
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Applying Demand Functions Lectures in Microeconomics-Charles W. Upton

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Imposing a Tax Price Consumers Pay S P o D Q o Q Applying Demand Functions

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An assessment $t is required on offers of an item Imposing a Tax Price Consumers Pay S P o D Q o Q Applying Demand Functions

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The supply bend movements up by $t. Why? The value suppliers get is $t not as much as buyers pay Imposing a Tax Price Consumers Pay $t S P o D Q o Q Applying Demand Functions

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Quantity sold drops What Happens Price Consumers Pay S $t P 1 P o P 1 - $t D Q 1 Q o Q Applying Demand Functions

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Quantity sold drops The value suppliers gets diminishes. What Happens Price Consumers Pay S $t P 1 P o P 1 - $t D Q 1 Q o Q Applying Demand Functions

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Quantity sold drops The value suppliers gets diminishes. The value buyers pay, duty included, ascents. What Happens Price Consumers Pay S $t P 1 P o P 1 - $t D Q 1 Q o Q Applying Demand Functions

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An expense $t is imposed on buys of an item Suppose Consumers Pay Price Consumers Pay S P o D Q o Q Applying Demand Functions

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A duty $t is collected on buys The bend movements around $t. The value customers pay is $t more, duty included Suppose Consumers Pay Price Consumers Pay S P o D $t Q o Q Applying Demand Functions

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An expense $t is imposed on buys The amount sold drops. Assume Consumers Pay Price Consumers Pay S P 1 +$t P o P 1 D $t Q 1 Q o Q Applying Demand Functions

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An expense $t is imposed on buys The amount sold drops. The value suppliers get declines Suppose Consumers Pay Price Consumers Pay S P 1 +$t P o P 1 D $t Q 1 Q o Q Applying Demand Functions

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An assessment $t is collected on buys The amount sold drops. The cost suppliers get abatements Suppose Consumers Pay Price Consumers Pay S The cost shoppers pay, expense included, builds P 1 +$t P o P 1 D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Analyze the two cases Price Consumers Pay S P c P o P s D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Lets join the two impacts Compare the two cases Price Consumers Pay S P c P o P s D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Lets join the two impacts Compare the two cases Price Consumers Pay S P c P o Shift in supply and interest bends is the same, $t P s D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Lets join the two impacts Compare the two cases Price Consumers Pay S P c P o P s Quantity Sold is the Same D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Lets consolidate the two impacts Compare the two cases Price Consumers Pay S P c P o P s Net cost to suppliers is the same D $t Q 1 Q o Q Applying Demand Functions

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Does it have any kind of effect? Lets join the two impacts Compare the two cases Price Consumers Pay S P c P o P s Price to shoppers is the same D $t Q 1 Q o Q Applying Demand Functions

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Conclusion The frequency of an expense is free of who really pays the assessment. The real split in the middle of demanders and suppliers relies on upon the supply\'s incline and interest bends, not the legalities. Applying Demand Functions

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An Old Problem The City of Kent is arranging an assessment on vehicles deals. One arrangement would require the assessment on merchants, the other on clients. Which will have the more noteworthy impact on deals? Applying Demand Functions

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An Old Problem The City of Kent is arranging an expense on car deals. One arrangement would require the expense on merchants, the other on clients. Which will have the more prominent impact on deals? There is a distinction? (Very) Applying Demand Functions

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End ©2004 Charles W. Upton Applying Demand Functions

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.:tslidesep

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