2. Taxes and welfareConsider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the governmentimposes any taxes.First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units in the absence of a tax. Then use thegreen point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamondsymbol) to shade the area representing total producer surplus (PS) at the equilibrium price.?270Demand210150120༔ ༔ ༔ ༔ ༔8830PRICE (Dollars per air conditioner)90Supply60Before Tax00 20406080 100 120 140 160 180 200SuppeseQUANTITY (Air conditioners)+EquilibriumΔConsumer SurplusProducer SurplusLeveice tax on air conditioning unite. The black ing on the followinweden creatad bu a tav

The equilibrium price and quantity is the point of intersection of the demand and supply curve.…

Answered: 2. Taxes and welfare Consider the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Marcus buys a tablet for $5,000. What determines the size of consumer surplus Marcus receives? Explain.
Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus p=D(x)=60-0001x; p= S(x)=30+0.0001x² The consumers' surplus is approximately $ (Round to the nearest dollar as needed.) The producers' surplus is approximately $ (Round to the nearest dollar as needed.) The graph of D(x)=60-0.001x is shown as a solid curve and the graph of S(x)=30+0.0001x² is shown as a dotted curve. Choose the correct graph below. OA 100 1000 Q C OB. 100+ 1000 Q OC. 100 Q O D. 1004 1000
Question 3 According to the following Figure, please answer a-f 12 D According to this graph, how much is the consumer surplus when price is set at equilibrium (P = $8)? (use the area of triangle: Base x Height x ½) According to this graph, how much is the producer surplus when price is equal to its equilibrium level (P=$8)? (use the area of triangle: Base x Height x ½) In the graph, how much is deadweight loss at a price of P =$8 (equilibrium)? Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x ½) In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) In all cases please show your calculations so I know how to arrive at those numbers! hp
Suppose the demand for football tickets at a local college is QD=60,000−500P and the supply of tickets is QS=20,000. Part 2 The market equilibrium price is $8080 and the equilibrium quantity is 2000020000 tickets. (Enter your responses as whole numbers.) Part 3 Total economic surplus in this market is $enter your response here. (Enter your response as a whole number.)
8. Consider the market for the Mona Lisa painting given by the following demand and supply curves: D: P = 1000-50QD and S: Qs=1 a. Draw the market for Mona Lisa paintings below. Label graph and axes. b. Calculate the equilibrium price and quantity of Mona Lisa paintings. Label P* and Q* on your graph from part a. C. Calculate consumer surplus and producer surplus. Label these (CS and PS) on your graph from part a. Suppose the French government imposed a $300 tax on buyers of Mona Lisa paintings. d. On the following graph, show the effect of the tax. Clearly label PBUYER PSELLER P, Q, QTAX CSTAX PSTAX, the tax revenue (TR), and DWL. (Here CSTAX PSTAX refer to consumer and producer surplus after the tax is imposed.) Calculate consumer surplus (CSTAX), producer surplus (PSTAX), deadweight loss (DWL), and the total tax revenue (TR) under the new tax. I e.
udy Tools Tips ss Tips Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Alex, green (triangle symbols) for Becky, purple (diamond symbols) for Clancy, tan (dash symbols) for Elleen, and blue (circle symbols) for Hubert. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $135. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette) 22# # 3 = = PRICE (Dulars per 100 H Nex Becky Clancy Elen Market Price Huber QUANTITY Motor scooters) Based on the information on the previous graph, you can tell that consumer surplus in this market will be Alex Becky Clancy Elen Hubert will buy motor scooters at the given market price, and total
ng.cengage.com CENGAGE MINDTAP Chapter 08 Homework First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. PRICE (Dollars per scooter) 300 270 Demand 240 210 180 150 120 90 Supply 60 30 Before Tax 0 0 140 280 420 560 700 840 980 QUANTITY (Scooters) 1120 1260 1400 Equilibrium A Consumer Surplus Producer Surplus Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $120 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus…
This is one question. Thank you for helping me understand the material.
Suppose a tax is levied in the market for soda. Consider a $0.50 excise tax on producers for each soda sold. The graph illustrates the demand and supply curves for soda both before and after the tax is levied. Use the graph below to answer the remaining parts of this question. SEE GRAPH d. What is the consumer surplus generated after the imposition of the tax? Shade in this area on the graph. Instructions: Use the tool provided “CStax” to illustrate this area on the graph. Consumer surplus after the imposition of the tax is $ _____ thousand. e. What is the producer surplus generated after the imposition of the tax? Shade in this area on the graph. Instructions: Use the tool provided “PStax” to illustrate this area on the graph. Producer surplus after the imposition of the tax is $ _____ thousand. f. What is the total revenue generated from the tax? Shade in this area on the graph. Instructions: Use the tool provided “TR” to illustrate this area on the graph. Tax…
The following equations represent the annual quantity demanded (Qd) and quantity supplied (Qs) for tickets for Danubiana Museum of Modern Art in Bratislava, Slovakia. Qd = 50,000-1,000P Qs = 10,000+3,000P, where P is the price of a ticket in euros. a) Suppose that there is a price floor of 7 euros per museum ticket in Slovakia. Will there be a surplus or a shortage in the market for tickets for Danubiana Museum of Modern Art? If yes, how large will it be? b) Suppose that there is a price ceiling of 7 euros per museum ticket in Slovakia. Will there be a surplus or a shortage in the market for tickets for Danubiana Museum of Modern Art? If yes, how large will it be? c) Suppose that there is a price ceiling of 20 euros per museum ticket in Slovakia. Will there be a surplus or a shortage in the market for tickets for Danubiana Museum of Modern Art? If yes,…
3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $80. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…
Consider a market with the equilibrium quantity = 100 and the equilibrium price = 50. Without further information on the market, can we answer the quantity that maximizes the total surplus? If we can, answer the quantity. If we cannot, answer “Cannot”.

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