3. The supply and demand schedules below describe the market for compact fluorescent lightbulbs (CFLS). Same Supply Q now at higher price with tax (millions) 200 Price Demand Supply (millions) Price + (millions) tax $2.00 400 200 $2.50 350 250 250 $3.00 300 300 300 $3.50 250 350 350 $4.00 200 400 400 $4.50 150 450 450 $5.00 100 500 500 a. Graph the supply and demand curves, drawing them to scale. $3.50 250
3. The supply and demand schedules below describe the market for compact fluorescent lightbulbs (CFLS). Same Supply Q now at higher price with tax (millions) 200 Price Demand Supply (millions) Price + (millions) tax $2.00 400 200 $2.50 350 250 250 $3.00 300 300 300 $3.50 250 350 350 $4.00 200 400 400 $4.50 150 450 450 $5.00 100 500 500 a. Graph the supply and demand curves, drawing them to scale. $3.50 250
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
See the chart on the first picture to answer those two questions in second picture.
Transcribed Image Text:三 T
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Title
Sub
Paragraph
Styles
b. Suppose that the government imposes a $1.00 tax on each CFL sold.
Assume that producers pay the tax. What would be the new supply
curve? Show it both on the supply schedule and on the graph.
c. After the imposition of the tax,
1. What is the new equilibrium price?
11. What is the new equilibrium quantity?
The three diagrams show the market for blue cod. The demand curve for cod is
Focus
4.
hp
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P- A-
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Title
Subtitle
Paragraph
Styles
3. The supply and demand schedules below describe the market for compact
fluorescent lightbulbs (CFLS).
Supply
(millions)
Same Supply Q now
at higher price with
tax (millions)
200
Price
Demand
Price +
(millions)
tax
$2.00
400
200
$2.50
350
250
250
$3.00
300
300
300
$3.50
250
350
350
$4.00
200
400
400
$4.50
150
450
450
$5.00
100
500
500
a. Graph the supply and demand curves, drawing them to
scale.
$3.50
1. What is the equilibrium price?
250
D Focus
hp
f10
f7
fg
144
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