In each case below, identify the effect on the market for coal Essay

In each case below, identify the picture on the securities industry for coal - Essay ExampleEquilibrium quantity supplied and demanded pass on increase from QE to QE*. Therefore, for the trade to clear, a new, lower terms mining technic will lead to a lower chemical equilibrium harm and a higher equilibrium demand quantity for the coal market to clearAn increase in wages paid to coal miners increases cost of mining and thus leads to an increase in cost of production. This is because raw materials cost will increase as a result of the high be of wages to coal miners. When the cost of inputs increases due to increased wages, the process of production becomes more costly (McEachern, 2010, p. 51). The chart below shows how these dynamics affect the mining market.As shown in the graph above, an increase in the cost of production associated by increased wage cost to firms will result to a shift of the translate kick the bucket from S to S*. Firms in the coal market will be willi ng turn in relatively less quantities of coal at the previous scathe (PE). A shift of the supply function to the left leads to an increase in the equilibrium price from PE to PE*. Equilibrium quantity supplied and demanded will decrease from QE to QE*. Therefore, for the market to clear, increase in wages paid to coal miners will lead to a higher equilibrium price and a lower equilibrium demand quantity for the coal market to clear (Mansfield, 1979, p. 29).An imposition of a $2 per ton tax on coal results to heavier costs burdens to producers of coal. Due to rational self-interest, the producers will try to shift this burden to consumers of coal (Krugman & Wells, 2010, p. 52). This is done by increasing the price by $2 for every tone sold. The effect of this tax can be shown in the graph below.Before slaying of the tax, the equilibrium supply curve was S. After the implementation of the tax, the new supply curve becomes St increasing the price from P to Pt. However, the producer receives Pt. The amount of tax