Q: Question 4
Producer surplus is the area below the equilibrium market price and is above the supply curve. It is measured by the difference between what producers get and what is the minimum price at which they are willing to sell.
Deadweight loss of taxation refers to the overall economic loss that is caused by the imposition of a new tax on a product or service in the market. It leads to a decrease in production and the reduction in demand caused by the imposition of a tax. The deadweight loss is also termed as a lost opportunity cost.
Questions 10-12 using the graph
b. Covid 19 pandemic has force the people in the economy Love & Laughter, to consume only 2 goods, food and clothing. The CPI is derived from the market basket of goods which consists of 25 units of food and 5 units of clothing.
2018 price per unit $8 $20
2019 price per unit $12 $40
(i). What are the percentage increases in the price of food and in the price of clothing?
(ii). What is the percentage increase in the CPI?
(iii). Do these price changes affect all consumers to the same extent? Explain.
Is online learning in pharmacy education as good as face-to-face learning?
please answer the following questions in the image below based on macroeconomics to your best ability