Add comments, discussion or calculations to your PART TWO document as directed. The market demand and supply curves for Quebec maple syrup are given by Qd = 2000 – 45P Q, = 35P+ 1000 |3D %3D where the quantities Q are in 1000s of gallons per year. The government of Quebec, seeking additional revenue sources, imposes a $2 per gallon tax on all maple syrup sold in the province. IN YOUR PART TWO DOCUMENT, show your work in calculating the size of the deadweight loss of this tax on the market, and drawing relevant pictures. HERE answer the following question: How much deadweight loss will there be as a result of the tax?

Add comments, discussion or calculations to your PART TWO document as directed. The market demand and supply curves for Quebec maple syrup are given by Qd = 2000 – 45P Q, = 35P+ 1000 |3D %3D where the quantities Q are in 1000s of gallons per year. The government of Quebec, seeking additional revenue sources, imposes a $2 per gallon tax on all maple syrup sold in the province. IN YOUR PART TWO DOCUMENT, show your work in calculating the size of the deadweight loss of this tax on the market, and drawing relevant pictures. HERE answer the following question: How much deadweight loss will there be as a result of the tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Market demand for Mandrake roots is given by Q=425-2P and marketsupply is given by Q=5P. The government of Sodden needs money, so it imposes a per unit tax of $5 on mandrake root. How much tax revenue do they raise with this tax?
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The demand curve for prepaid internet services is given by Pd = 80 – 0.2Q and the supply curve is given by Ps = 20 + 0.2Q(a) The consumer surplus (CS) is estimated at 2250. (b) An imposition of a tax of PHP10 per unit on prepaid internet services will result in a producer surplus (PS) equivalent to 1262.5. (c) An imposition of a tax of PHP 10 per unit will reduce the CS by 687.5 and PS by 687.5. Thus, the net loss to society with the imposition of a tax is 1375.
QUESTION 11 The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T. Demand for traffic (measure as traffic volume per minute) on this road is T=6,880 -– 70.(1/S). a. Find the equilibrium traffic volume in the absence of any congestion tollI. b. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. c. Find the optimal level of traffic volume. d. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the "penalty box" for this period of time.)
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Daily demand for gasoline at a Gas Station is described by Q = 980 - 300p, where Q are gallons of gasoline sold and p is the price in dollars. Gas Station's supply is Q = -2,980 + 3,000p. Suppose the state government places a tax of 18 cents on every gallon of gasoline sold. (a) What are the before-tax and after-tax equilibrium quantities of gasoline Q? (b) What are the changes in consumer's and producer's surplus due to tax? (c) What is the deadweight loss resulting from this tax?
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Paper cups are popular items for schools and are produced in the market. There are equations for the Supply and Inverse Demand of paper cups that model its Supply and Demand graph. These equations are (for supply), P = 2 + 3Qs, and (for Inverse Demand), P = 12 - 2Qd. Likewise, paper cups are inexpensive and not very helpful for companies trying to achieve high profits. As a result, the government placed a price support of $9. (Part I) Draw the market equilibrium with the government intervention (Q**, P**) of the price ceiling. Please label the graph for slopes, equilibrium points, price support, etc. (Part II) What is the market equilibrium with the intervention of the government (Q**, P**)? (Part III) What is the government surplus (GS**)? (Part IV) What is the Dead Weight Loss (DWL**)?
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