Question 3 Consider the following policies, each of which is aimed at reducing violent crimes in Country Liberty by reducing the use of guns. Demonstrate diagrammatically and explain the effect of each of these proposed policies in a demand and supply diagram of the gun market. HINT: Draw a diagram to show the price paid by consumers, the price received by producers, and the quantity of guns sold. What is the difference between the price paid by consumers and the price received by producers? Has the number of guns sold increased or decreased? and briefly explain the impact of each economic policy] A tax on gun buyers. a. b. A tax on gun sellers с. A binding price floor on guns d. A tax on gun ammunition

Question 3 Consider the following policies, each of which is aimed at reducing violent crimes in Country Liberty by reducing the use of guns. Demonstrate diagrammatically and explain the effect of each of these proposed policies in a demand and supply diagram of the gun market. HINT: Draw a diagram to show the price paid by consumers, the price received by producers, and the quantity of guns sold. What is the difference between the price paid by consumers and the price received by producers? Has the number of guns sold increased or decreased? and briefly explain the impact of each economic policy] A tax on gun buyers. a. b. A tax on gun sellers с. A binding price floor on guns d. A tax on gun ammunition

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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2. Consider the Table below representing the number of 21-inch colour TV's individuals are willing to purchase in Ndola and Kitwe: Price Quantity Demanded-Kitwe Quantity Demanded- Ndola К350 100 75 К325 150 100 К300 200 125 K275 250 150 K250 300 175 a) Plot these data, with price (P) on the vertical axis and quantity (Q) on the horizontal axis. Connect the points for quantity demanded in Ndola and Kitwe. Lebel the Ndola line D1 and the Kitwe line D2). b) Find the increase in the quantity of TV units purchased in Ndola and Kitwe when the price of TV's is lowered from K300 to K275. c) Find the slope of the Demand lines D1 and D2 when the price is lowered from кз00 to K275. d) What does the difference in the slope of demand lines D1 and D2 indicate? e) Obtain the National demand schedule if Kitwe and Ndola were the only cities in the country. f) Explain what will happen to demand for TVs if one of the following happen i) ii) iii) Price of DSTV increases There is a wage freeze in the…