suppose the canadian governemt. has decided to place an excise tax of $40 per tired on producers of automoblie tires. Price per tine100140130120110100700050Quantity of tinesAs a result of the tax, the effective price that consumers will pay is $per tire, and the effective price that sellers will receive is $The new equilibrium quantity istires.

Answered: 120 100 70 00 Qutity of tie As a result…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 8-2 T₂ C Price T₁ 7 L a. X .b. YX U C. X + Y d. Z Figure 8-2 X W 9₂2 V Y T 91 Supply Refer to Figure 8-2. Suppose a tax of T1 is imposed in this market. Which area represents the deadweight loss of tax? Demand Quantity
1) Consider a market where the demand and supply for a particular good is as shown below: P (TL/unit) 210900 7610 32- 12 11 8 5 1 2 3 4 5 6 7 8 9 101112 Q (units/day) a. Find the (own-price) elasticity of supply at the price of 5 TL/unit. b. If the government imposed a price ceiling of 3 TL/unit, what would the equilib- rium price and the equilibrium quantity be? What would the consumers' surplus, producers' surplus, and dead-weight loss be under this policy? c. If the government imposed a tax at the rate of 3 TL/unit on the consumer what would the equilibrium price that the consumers face be? What would the equilib- rium price that the producers face be? What is the quantity traded at equilibrium? What is the consumers' surplus, producers' surplus and the dead-weight loss under this policy? d. Is there a government policy that, under this policy the quantity traded, at equilib- rium, would be 7 units/day? If there is such a policy, be specific about the policy stating all the…
If the tax is imposed on the sellers, shouldn't the 'T' be used alongside the supply 'q' not the demand 'q'? So would it not be q=b(p-T)-a?

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120 100 70 00 Qutity of tie As a result of the tax, the effective price that consumers will pay is S per tire, and the effective price that sellers will receive is S The new equilibrium quantity is tires.