2. Assume that the unit tax is $6.00 and the pre-tax equilibrium quantity and equilibrium price is 600 units and $100.00 respectively. Also, assume that the post-tax equilibrium quantity is 500 units. If E, = E, = 2.5, compute the following: i. The total tax burden? j The total tax revenue received by the government? k. The post-tax equilibrium?

2. Assume that the unit tax is $6.00 and the pre-tax equilibrium quantity and equilibrium price is 600 units and $100.00 respectively. Also, assume that the post-tax equilibrium quantity is 500 units. If E, = E, = 2.5, compute the following: i. The total tax burden? j The total tax revenue received by the government? k. The post-tax equilibrium?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the demand curve is described by the equation Q = 70 - 2P, and the supply curve is described by the equation Q = 10 + P. The government hasintroduced a $ 9 per unit consumer tax. Define : 1) how will the equilibrium price and volume of production change; 2) what is the state's income from the introduction of this tax; 3) to what extent producers will be affected by the introduction of this tax.
Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by $5. Suppose further that the price elasticity of demand for sofas is 1.8 and the price elasticity of supply for them is 1.6. It can be concluded with certainty that the amount of the excise tax was Select one: OA less than $5. B. $5. OC. greater than $5 but less than $10. OD. $10. OE. greater than $10.
"Suppose that a market is described by the following supply and demand equations: QS =3P; QD-400-P. a. Suppose that a tax of T is placed on buyers, so the new demand equation is QD =400-(P+T). Solve for the new equilibrium and calculate the price received by sellers, the price paid by buyers, and the quantity sold. b. Solve for tax revenue as a function of T. c. Solve for deadweight loss as a function of T."
a) The government decides to impose a unit-tax on producers instead of a unit-sales tax on consumers, arguing that this will protect consumers from negative effects of the tax. Your response to this statement should be that O This is incorrect reasoning, because consumers actually will be affected more by the tax on production than a sales tax O This is incorrect reasoning, because consumers are always hit harder by a sales tax O This is incorrect reasoning, because it doesn't matter whether the tax is imposed on sales or production, the impact is the same O This is the correct reasoning, because consumers do not pay for the production. b) Tom likes eBooks and iTunes. eBooks cost $4 and provide a marginal utility of 10; iTunes cost $1 and provide a marginal utility of 3. To maximize utility for the given budget, Tom should O Buy more eBooks and fewer iTunes O Buy fewer eBooks and more iTunes O Not change his current consumption choice
3. Suppose the market equilibrium price for Kindles are $50 each. Using a supply and demand graph, illustrate the effect of an addition of a $10 per-unit unit tax on Kindles (imposed on sellers), where the entire tax incidence is equally split between buyers and sellers. Point out the following before and after the excise tax: a. Consumer surplus b. Producer surplus c. Tax revenue d. Deadweight loss
What is the government's revenue collected from the $20 sales tax on each yellow bell pepper? Enter the dollar value in the blank below. Repeating the table for convenience: Table 1: Table Price Q. Demanded Q. Supplied $ 20 120 110 100 90 80 70 60 $25 $ 30 $ 35 $40 $45 $ 50 $55 $ 60 $65 $ 70 $75 $80 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 110 120
Algebraically, solve for the after tax equilibrium price and quantity in the corn market, if the government collects a specific tax of t=$2.40 from customers. The before-tax linear demand function for U.S. corn is given as Q=15.6-0.5p and the original supply curve is given as Q=9.6+0.25p. Please show with a diagram.
macro question 12
QUESTION 18 Exhibit 19-6 Price of Good X 0 Quantity of Good X Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two equilibrium prices are $2.20 and $2.75. What is the tax revenue collected from the tax that shifted S 1 to S 2 when D 1 is the relevant demand curve? a. $440 Ob. $600 O c. $900 Od. $800
Was able to get the first two, but having trouble figure out the answers to one decimal place on the following: