5.255.004.754.504.254.003.75-3.503.253.002.752.502.252.00300 320 340 360 380 400Suppose that a $0.75 tax is imposed in this market. What is the tax incidence?1/31/22/3 5.255.004.754.504.254.003.75-3.503.253.002.752.502.252.00300320 340360 380 400Suppose that a $0.75 tax is imposed in this market. What is the new equilibrium price that suppliers receive?4.253.503.754.50

The imposition of the tax of $0.75 in the market, it will lead to the leftward shift in the demand…

Answered: 5.25 5.00 4.75 4.50 4.25 4.00 3.75-…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 7-8 Price Equilibrium price A B C D Q₁ E F G Equilibrium quantity Supply Demand Quantity
12- 11- Price of Santa hats (5) 9. 2 1 2000 4000 6000 8000 Quantity of Santa hat Supply Demand 10000 Suppose a 3 dollar tax is imposed on the market for Santa hats depicted above. Consumers will then pay a post-tax price of dollars (give a whole number).
Consider the following figure. What is the Consumer Surplus in this market when the market is at equilibrium? $ Demand and Supply Price $10 $9 - Quantity Demanded $8 $7 Quantity Supplied $6 $5 $4 $3 $2 $1 $0 O 1 2 3 4 5 6 7 8 9 10 Quantity
What would be the impact of a price ceiling of $ 10 (a) a new equilibrium quantity would be established. (b) a shortage of 12 units. (c) a surplus of 20 units. (d) a shortage of 6 units. (e) a surplus of 12 units
Suppose Home is a small exporter of wheat. At the world price of 100 US dollars per tonne, Home growers export 20 tons of wheat. Now suppose the Home government decides to support its domestic producers with an specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following questions: Figure 1: Supply and Demand for Wheat at Home Home price 140 100 X 10 20 40 50 Supply Demand Quantity (a) Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms.
Price 18 16 14 12 10 8 4 1 1 Market for Computer Games HH H 1 1 1 1 1 1 There is no surplus quantity 30 45 15 1 1 1 0+ 0 5 10 15 20 25 30 35 40 45 Quantity 1 H 1 1 I 1 1 50 55 60 65 70 75 Consider the market for computer games in the graph above. The quantity supplied decreases by 15 games at each price as a result of an increase in input costs. After the supply decreases, the government sets a price floor at $12 per game. What is the resulting surplus quantity from this policy (considering the new supply curve)?
11
Can you help me with the question below? Refer to Figure 1 for questions 6-11 In Figure 1, S = Market Supply Curve; D = Market Demand Curve. What is consumer surplus at the competitive market equilibrium price and quantity?A) $50B) $40C) $25D) $16E) $8
Consider the following figure. Price $4.00 O $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 5 15 Quantity A price floor set at $2.50 will result in 10 a surplus of 10 units. a surplus of 5 units. a shortage of 10 units. 20 25 30 a shortage of 5 units. no change to the market outcomes. Supply Demand 35 40
Question 13 Homework • Answered Refer to the supply and demand diagram below. If an subsidy of $3 per unit is introduced in this market, the price that consumers pay will equal and the price that producers receive net of the subsidy will equal 2$ 12 11 10 9 8 7 6 4 3 D: 2 Q 6 8 10 12 14 16 18 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $2; $5. Your answer b $3; $6. $4; d $5; $8. Answered - Incorrect • 1 attempt left Change your responses to resubmit 1 Resubmit
3. Consider a market where the supply and the demand are given by Q (P) = 100P and QP (P)=2000-100P. (a) Find the equilibrium price, quantity, consumer surplus, producer surplus, and the aggregate surplus. (b) Suppose the government wants to raise revenue by imposing tax of Y4 per unit. What is the price producers get, the price consumers pay, the equilibrium quantity, the tax revenue, and the dead weight loss? (c) Suppose the government is thinking about imposing an ad valorem tax instead of per unit tax. What does the tax rate has to be to keep the price consumers pay the same as in the per unit tax case? (d) Which tax scheme is better for the economy? Why?
1. The demand curve for cab rides is p = 5 · y where y represents passenger miles. %3D 1,000' The supply curve is p = 2 for y< 2,500 and it becomes perfectly inelastic at y = 2,500. (i) Find the equilibrium price and quantity. (ii) Find the consumers' surplus and producers' surplus. (iii) Suppose that an excise tax of e = 0.50 per passenger mile is imposed on suppliers. Find the new equilibrium price and quantity. (iv) Finally, suppose that a sales tax of t= 0.50 is imposed on consumers. (The excise tax is still in place.) Find the new equilibrium price and quantity. (v) Explain briefly why the economic burden of the tax and the deadweight loss from imposing the tax are different for the excise tax and the sales tax.

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