[5] The supply curve is horizontal at the price of 3. At this price quantity demanded is 40 units of the good. The government imposes a quantity tax of 1, to be paid by suppliers. As a result the supply curve shifts up as pictured below. Shade in the area representing the loss of consumer surplus. p 4 3 D q 30 40 new supply curve [6] In [5], what is the numerical value of the wet deadweigit loss to society? Net Deadweight Loss= 2

[5] The supply curve is horizontal at the price of 3. At this price quantity demanded is 40 units of the good. The government imposes a quantity tax of 1, to be paid by suppliers. As a result the supply curve shifts up as pictured below. Shade in the area representing the loss of consumer surplus. p 4 3 D q 30 40 new supply curve [6] In [5], what is the numerical value of the wet deadweigit loss to society? Net Deadweight Loss= 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
6
Q# 2 Supply $1.60 1.00 .50 Demand 130 200 290 Quantity With reference to the above diagram when shortage and surplus could occur? What is the equilibrium point? Max demand is at what point? Price
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Lesson 10 Question 7
ducation.com/ext/map/index.html?_con%3Dcon&external_browser%-D0&launchUr Saved Refer to the figure below. 10 47 4+.. 0. 4 8. 12 16 20 Quantity if a price ceiling were imposed at $4, consume sup.ould. Multiple Choice $24 Price (5)
What would be the impact of a price floor of $12 A) There would be no impact B) a shortage of 12 units C) A surplus of 6 units D) A shortage of 6 units E) A surplus of 10 units