Question 01
a)
b) Consumer pays P1 originally, after impose of tax, consumer pays P2, there is a consumer burden = P2 – P1
c)
d) Burden is depends on elasticity, its not depends on who imposed on. Whether the tax is imposed on sellers or buyers, the consumer burden are the same, consumer pays and producer receives are the same as well. However it would be logistically and practically easier to impose it on seller rather than the buyers (huge amount of buyer thus too hard to collect from every single of them).
Question 02
a) The price elasticity of demand is a units-free measure of the elasticity of the quantity demanded of a good to a change in its price when ceteris paribus
Price elasticity of demand = % change in quantity …show more content…
Question 08
a) In the monopolistic competition, there are many buyers and sellers, slightly different product and no barriers to entry. In the supply chain of sugar, I think the stage of customer to consumer can exemplifies this market stage. In this stage, there are many customers are consumers, where customers have slightly different product of sugar and no barriers to entry.
b)
This photo is a restaurant, there are many restaurant and costumers, every restaurant has different dishes and there is no barrier to open a restaurant.
c) In the oligopoly, there are few firms with identical/differentiated products and there are barriers to entry, also firms are interdependent. In the supply chain of sugar, I don’t think there is a certain stage can exemplifies this market structure. However if we can hypothesis a scenario where there only few manufacturing factories of making sugar, then those factories are interdependent with others.
d) This is photo of Woolworths, there are few firms such as Coles which are similar as Woolworth, they have identical product and also interdependent with each
a)
b) Consumer pays P1 originally, after impose of tax, consumer pays P2, there is a consumer burden = P2 – P1
c)
d) Burden is depends on elasticity, its not depends on who imposed on. Whether the tax is imposed on sellers or buyers, the consumer burden are the same, consumer pays and producer receives are the same as well. However it would be logistically and practically easier to impose it on seller rather than the buyers (huge amount of buyer thus too hard to collect from every single of them).
Question 02
a) The price elasticity of demand is a units-free measure of the elasticity of the quantity demanded of a good to a change in its price when ceteris paribus
Price elasticity of demand = % change in quantity …show more content…
Question 08
a) In the monopolistic competition, there are many buyers and sellers, slightly different product and no barriers to entry. In the supply chain of sugar, I think the stage of customer to consumer can exemplifies this market stage. In this stage, there are many customers are consumers, where customers have slightly different product of sugar and no barriers to entry.
b)
This photo is a restaurant, there are many restaurant and costumers, every restaurant has different dishes and there is no barrier to open a restaurant.
c) In the oligopoly, there are few firms with identical/differentiated products and there are barriers to entry, also firms are interdependent. In the supply chain of sugar, I don’t think there is a certain stage can exemplifies this market structure. However if we can hypothesis a scenario where there only few manufacturing factories of making sugar, then those factories are interdependent with others.
d) This is photo of Woolworths, there are few firms such as Coles which are similar as Woolworth, they have identical product and also interdependent with each