Consider the market for a good, where demand and supply are given by thefollowing equations.P=34-QdP=10+2 QWith the aid of a labelled diagram analyse the economic effects of a $3 per unittax on this good, levied on producers.PInitial Equilibrium Price_New Equilibrium Quantity_New Producers' PriceBurden of the Tax on ConsumersBurden of the Tax on ProducersTax Revenue to the Government1) Initial Equilibrium Quantity_12\New Consumers' Priceper unitper unit.17.1

Labeled Diagram: Here's a labeled diagram representing the market before and after the tax:labeled…

Answered: Consider the market for a good, where…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Show all work please thanks D.) Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) E.) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x 1⁄2) F.)In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) please show calculations so I know how to arrive at those numbers! Thank you
Question 4: Show mathematically the effects on the equilibrium price and quantity of corn from a per unit of tax of t=$2 collected from suppliers, where Qd= 20-2p and Qs= 3p-20. Determine the after tax equilibrium price and quantity. Also, draw a graph to show the new price and quantity (showing also how the tax shifts the supply curve). How much will be the burden of tax on consumer and suppliers? What is the tax revenue? What is the DWL of the tax?
Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, what happened to producer surplus in the market? A B Producer surplus increased from $12.5 million to $49 million. Producer surplus increased from $12.5 million to $24.5 million. Producer surplus increased from $3 million to $7 million. Producer surplus increased from $4.2 million to $5.6 million. C D
Due to the decrease in the level of water in the lakes of Chapel Hill, the local government wants to reduce the consumption of tap water. They are evaluating two alternatives: to impose a minimum price per gallon of tap water consumed that is five cents greater than the actual price, or to impose an excise tax of five cents on consumption of tap water. Assume that this market is originally in equilibrium. Which of these two alternatives will deliver a bigger reduction in the quantity consumed? Why? Use graphs to explain your answer. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1
Assume that the monthly demand for Gala apple in the US is given by q=1200-300p and quantity is in million pounds. The monthly supply of Gala is q= -200+400p for p>$0.5. Now assume that the government has imposed a quantity tax equal to $0.14 on each pound of apple. What is the new equilibrium consumer price, producer price and quantity?
Assume that the markets for sugar cane, rum, and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes for consumption. 1. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. 2. How will this impact the revenues for sugar growers, rum producers, and whiskey producers?
step by step solution,please when calculating the dead weight loss use a graph to show working. b, c and d onlys
Qb) only.
Don't use chatgpt and make sure you include the graphs needed (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?
Can I get the answer please, equilibrium price and quantity already calculated?
1. Consider a market described by the following equations: Qd = a + BP Q₁ = Q + μP S Where a, ß, q and μ are parameters. Note that must be less than zero and the other parameters are positive. Answer the following questions. Solve for the equilibrium price and quantity. a. b. C. Now suppose a specific tax, t > 0, is imposed on this market that has to be paid to the government by sellers. Show in a clearly labeled supply and demand diagram what happens to the equilibrium effectively price received by sellers, and the price paid by buyers. Be sure to label the price received by sellers and the price paid by buyers in terms of P*(t) and t. Set up the equilibrium condition. Then solve for the price paid by buyers, the price received by sellers, and the after tax equilibrium quantity in terms of the parameters of the model and the tax amount T. d. Using calculus and the equation that you found for P* in part c, find an expression for the tax incidence on the buyers and determine its sign.…

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