4. 2 / 2 100% + | Use the graph below to answer parts a and b. $12 Price 8.15 532 3.65 220 400 à. Assume no taxes are levied. What is consumer surplus? ii. What is consumer surplus? Supply iii. What is producer surplus? Demand b. Now suppose a $4.50 tax per unit is imposed. (You may shade in the graph or give a numerical answer below.) i. What is tax revenue? Quantity

Q: How to determine consumer surplus, producer surplus, tax revenue, economic surplus after tax?

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A: Consumer surplus shows consumer ability to pay for any good and producer surplus shows producer’s…

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A: Producer Surplus is the difference between how much a customer willing to accept for the given…

Q: PRICE 2 1 11 8 21096966 A Supply 5 4 * 3 Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0…

A: Total surplus is the sum of consumer and producer. In the context of government taxation, the…

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A: Consumer suplus before tax = ½ * (18 - 10) * (10-0) = 40 Producer surplus before tax = ½ * (10-3) *…

Q: Question 5

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Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change…

A: The consumer surplus is the area below the demand curve and above the price. Producer Surplus is the…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…

A: Consumer surplus is the area under the demand curve and above the market price. Whereas, the…

Q: Question 19 12 11 10 9 6 4 3 1 10 20 30 40 50 60 70 80 90 100 110 120 2 The go ent imposes a $3 tax.…

A: Consumer surplus is the area above the market price and below the demand curve up to equilibrium…

Q: Use the following graph shown to fill in the table that follows. Consumer surplus Producer surplus…

A: The consumer surplus refers to an area below the demand curve and  above the equilibrium price of…

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Q: Use the graph below to answer the following question. If government placed a price ceiling of $2 on…

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Q: Question 5 uppose that the government imposes a tax on cigarettes. Use the diagram below to answer…

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Q: Using the attached graph, calculated the following: Consumer surplus before tax Producer surplus…

A: Consumer Surplus: Consumer surplus is the net benefit that the consumer receives by purchasing…

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A: ANSWER   In the competitive market product prices are effected with sales taxes. For example a firm…

Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k…

A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there…

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A: As there are multiple parts, the first part would be solved. To get answers to the rest of the parts…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: Consumer surplus after tax = ½ * (18 max price - 12 $ after tax price paid ) * (10 qty afte tax - 0)…

Q: f a tax of $1.20 is imposed on consumers in this market, what is the new consumer surplus?   a.…

A: Tax = 1.2 Equilibrium Price = 1.5 Equilibrium Quantity = 30000

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A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the…

A: Consumer and Producer surplus The consumer surplus  basically refers to the difference between what…

Q: The graph below shows supply and demand curves before tax $65 $60 $55 $50 $45 $40 $35 $30 $25 $20…

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Q: The vertical distance between points A and C rep tax in the market. 1000 Price 900 800 700 600 500…

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Q: The demand and supply for bicycles is given by: Qd = 1000 - 10P Qs = 2P - 20 The government imposes…

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Q: Assume the old equilibrium before tax remains the same, but now assume the new equilibrium price is…

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Q: 24 22 20 18 Supply 16 14 10 Demand 369 12 15 18 21 24 27 30 QUANTITY Consider the market described…

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Q: a. Before the tax is imposed, the equilibrium price is $ 3 and the equilibrium quantity is 10. This…

A: Using this…

Q: Refer to the figure below: 12 11 10 Supply Demand s 10 15 20 25 30 35 40 45 If a tax of $3 is levied…

A: Producer surplus demonstrates the welfare or surplus collected by the suppliers of a good.  It is…

Q: Use the graph below to answer the next two questions: P PB-100 P=80 P₁=75 1. 2. P.S=0 =60 1500 1875…

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A: Deadweight Loss: A deadweight loss is a cost to society created by market inefficiency, which occurs…

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A: We have to calculate producer surplus .

Q: what is the size of consumer surplus when a price ceiling of $5 is imposed? 20. what is the size of…

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Q: Suppose that the government imposes a tax on cigarettes. Use the diagram belov to answer the…

A: Equilibrium is achieved at the output level where Qs equals Qd.