I need help with question 2. You guys have already answered number 1. Externalities and Tax Incidence 1. Sketch a supply and demand framework for paved driveways. Who do you suppose is less elastic, consumers or sellers? Be sure your model reflects this (there are no wrong choices of who is less elastic; just take your pick if you don't have a good idea). 2. Assuming that impervious surfaces are damaging to waterways, include a new supply curve into model that reflects all costs of production. 3. Suppose a tax is imposed on the buyers of driveways. Suppose the tax is exactly the right amount to make the quantity achieved equal to the new equilibrium. Sketch the change(s) to the market with your tax imposed. Identify the losses to consumers and suppliers, dead weight loss and government revenue. Discuss dead weight loss in this context. 4. What will likely to happen to employment in the production of driveways? Why? 5. What other policy alternatives, generally, are available to address the externality?

I need help with question 2. You guys have already answered number 1. Externalities and Tax Incidence 1. Sketch a supply and demand framework for paved driveways. Who do you suppose is less elastic, consumers or sellers? Be sure your model reflects this (there are no wrong choices of who is less elastic; just take your pick if you don't have a good idea). 2. Assuming that impervious surfaces are damaging to waterways, include a new supply curve into model that reflects all costs of production. 3. Suppose a tax is imposed on the buyers of driveways. Suppose the tax is exactly the right amount to make the quantity achieved equal to the new equilibrium. Sketch the change(s) to the market with your tax imposed. Identify the losses to consumers and suppliers, dead weight loss and government revenue. Discuss dead weight loss in this context. 4. What will likely to happen to employment in the production of driveways? Why? 5. What other policy alternatives, generally, are available to address the externality?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 10PA

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I need help with question 3. You guys have already answered number 1 and I have provided the answer below1 Externalities and Tax Incidence 1. Sketch a supply and demand framework for paved driveways. Who do you suppose is less elastic, consumers or sellers? Be sure your model reflects this (there are no wrong choices of who is less elastic; just take your pick if you don't have a good idea). 2. Assuming that impervious surfaces are damaging to waterways, include a new supply curve into model that reflects all costs of production. 3. Suppose a tax is imposed on the buyers of driveways. Suppose the tax is exactly the right amount to make the quantity achieved equal to the new equilibrium. Sketch the change(s) to the market with your tax imposed. Identify the losses to consumers and suppliers, dead weight loss and government revenue. Discuss dead weight loss in this context. 4. What will likely to happen to employment in the production of driveways? Why? 5. What other policy alternatives,…
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