= 2. The market demand and supply functions for liquor are: Q = 2000 - 20P and Q 200 + 10P. To reduce the externality created by drunks, the HK government decided to impose $10 per unit tax on the producers. a Find the price paid by buyers, price received by sellers and the quantity sold with the tax. b Find the changes in consumer surplus and producer surplus. с Find the deadweight loss of the policy.

1) The demand function for a product is shown by the equation P = 15 – Q and the Supply function P = 3 + 0.5Q. the product is subject to a tax of IDR.3/unit a. Determine the amount and price of the balance before and after tax. b. determine the amount and the balance price if the government provides a subsidy of IDR.2/unit c. how much tax is borne by producers and consumers d. how much of a subsidy is enjoyed by consumers e. How much does the government get for taxes and the amount of subsidies issued by the government?

What is the price elasticity of demand(Using the Midpoint method) when the price changes from $10 to $13? If the Government imposes a tax of $6 per burrito, how many burritos will be sold in the market?

Suppose that a lumber-producing firm had a demand for the ability to burn sawdust given by: Q = 90- P. Where Q is amount of sawdust burned when the firm has to pay price (P) per unit of sawdust burned. Calculate the quantity of sawdust burned if there is a per unit tax of $26 per unit of sawdust burned. (Do not include a $ sign in your response. Round to the nearest 2 decimal places if necessary.) Answer: Check

Considermarketforagoodcharacterizedbythefollowinginverse demand and supply functions: PX = 10 − 2QX and PX = 2 + 2QX.a. Compute the surplus received by consumers and producers.b. Now suppose all manufacturers of this good are to pay a lump tax of $0.10that will be used by the government regulators to defray some of the environmental cost imposed by this good’s production. What will be the new surplus received by consumers and producers?c. Based on your results in part ‘b’ above, how will you evaluate the impact of this tax policy on the society? Explain

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Suppose the government imposes a tax of $20 million per month on cable producers. If Comcast wants to maximize its profit, what price per subscription should it charge per month?

The demand for beer is more elastic than the demand for milk. Would a tax on beer or a tax on milk have a larger deadweight loss? Why?

Price 24 22 20+ A 18 Supply 16 B 14 C 12 F 10 D H G J 6 4 K M Demand 2+ 3 6 9 12 15 18 21 24 27 30 33 36 39 Quantity Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in the above figure. The Gov. R. is equal to the following area В B+D D+F J+G

Suppose bread is subsidized in a small Caribbean nation with a high percentage of citizens who live in poverty with a following demand function: P = 300 – 5 Qwhere P is the price and Q is quantity demanded   The subsidy is paid to suppliers of bread by the government in the amount of 50 cents per loaf. In the absence of the subsidy, the price of bread would be 80 cents per loaf. Assuming that the supply of bread is perfectly elastic at the 80 cents price, show in a diagram the effect of the subsidy on the market equilibrium price of bread. Assuming no externalities, show that the subsidy will result in more than the efficient amount of bread being produced. Show the excess burden of the subsidy on your graph and compute its dollars.