40) Use the following graph for a competitive market to answer the question below.$3.50*$2.50300 400Price A$1.25DQuantityAssume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curvefrom S1 to S2. How much of the total tax revenue is paid by the buyer?41) You have decided that you want to attend a costume party as Iron Man. You estimate that it will cost$40 to assemble your costume. After spending $40 on the costume, you realize that the additional piecesyou need will cost you $25 more. The marginal cost of completing the costume is $( ).

***Since the student has posted multiple questions, the expert is required to solve only the first…

40) Use the following graph for a competitive market to answer the question below. Price $3.50 $2.50 $1.25 Quantity Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer? 300 400

40) Use the following graph for a competitive market to answer the question below. Price $3.50 $2.50 $1.25 Quantity Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer? 300 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price $28 $24 $20 $16 $12 $8 $4 Supply. Demand 1,000 2,000 3,000 4,000 5,000 6,000 Quantity of Pizzas C. $12 D. $14 E. None of these answers is correct. Refer to the graph above. If this market is in equilibrium, the consumer surplus generated by the 2,000th pizza is A. $4 B. $8
8. U.S. government price supports for milk led to an unceasing surplus of milk. In an effort to reduce the surplus about a decade ago, Congress offered to pay dairy farmers to slaughter cows. Use two graphs, one for the milk market and one for the meat market, to illustrate how this policy should have affected the price of meat. (Assume that meat is sold in an unregulated market.) Be sure to draw the inverse demand and supply curves and label your axes. Explain clearly.
1. If the demand curve of a market is P = 16 - Q and the supply curve is P = 2 + 4Q, but a price ceiling of 6 is imposed, what will the shortage be? (Please show your equation, calculation, and final answer; no need to draw graphs)
9) MARKET EQUILIBRIUM Suppose the demand for a product is given by p = d(q) = -0.4q + 300 and the supply for the same product is given by p = s(q) = 0.2q. For both functions, q is the quantity and p is the price, in dollars. a. Find the equilibrium point. (i.e. the market demand quantity and the market price) b. Find the consumer surplus at the equilibrium price. c. Find the producer surplus at the equilibrium price.
7. Consumer surplus, producer surplus, and deadweight loss with quantity restrictions The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equilibrium price and quantity of computer keyboards. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. PRICE (Dollars per computer keyboards) 200 180 160 + 140 120 100 80 60 9 20 10 Demand Supply 0 5 25 30 25 40 10 15 20 QUANTITY (Millions of computer keyboards) 45 50 [x] Consumer Surplus Producer Surplus
2. Taxes and welfare Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. 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) 100 90 Demand 80 70 60 50 40 28 84 8 30 Supply 20 10 0 0 160 320 480 Before Tax 640 800 960 1120 1280 1440 1600 QUANTITY (Scooters) Equilibrium A Consumer Surplus Producer Surplus
2. The following graph shows the demand and supply for i-Pods. Price 100 80 60 40 20 0 0 80 160 240 Quantity of i-pods 320 is D 400 a. What is equilibrium price and quantity? b. Suppose that a $20 per unit sales tax is placed on the product. What is the new equilibrium price and quantity? c. What proportion of the tax is paid by the consumer, and what proportion is paid by the seller in this case?
Question 3 The current price of a good is $25, and 100 units are demanded at that price. The price elasticity of demand for the good is-2. When the price of the good drops by 4 percent to $24, consumer surplus will increase or decrease? By how much?
QUESTION 46 46. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn, what will happen if the government eliminates the price support for corn? a) Demand for ethanol will increase. b) Demand for ethanol will decrease. c) Supply of ethanol will increase. d) Supply of ethanol will decrease. e) Both (a) and (c)
Qb) only.
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1. The government imposes a price floor in the market for peanuts in order to stabilize or raise farmer's incomes. a) what would happen to the quantity demanded and the quantity supplied of peanuts? b) would a shortage or surplus results? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully.