DUse the graph below to answer the following questions: (you can identify an areaby using the letters, for instance Area BAK)BPSAKPNMRaDDa) Which area represents consumer surplus at price P?b) Which area represents producer surplus at price P?c) What is the change in consumer and producer surplus after a price floor is putin place at price A?d) Is the economy better off, worse off, or unaffected after governmentintervention? Explain your answer.acer

Ans. ) Given the question is related to the concept of consumer surplus and producer…

Answered: D Use the graph below to answer the…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 11P

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Suppose that the government imposes a tax on eigarettes. Use the diagram below to answer the questions. Dis the demand curve before tax, S is the supply curve before tax and Sis the supply curve after the tax Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax indicate: (0) Price paid by consumers (8) Price paid by producers () Quantity of cigarettes sold (w) Buyer's reservation price
Please answer a to d I really need this. I will rate sir please a answer
Energy dnnKS has been causing dea th Senator Miller proposes 8 2 tax ( that on average cost $ 2. on the arnnks Senator cruz thinks is too nigh. in response, the Miller Bill was fixed to make it a $ I tax. DRAW A ORAPA. Locate equilibrium price and quantity. which letters reppsent the proaucer and oonsumer $urplus Z ata before the tax ? which repruent after the tax ? Did the surplus increase or decrease? why}
Need help with A and B
(e) (i) Calculate the consumer surplus after the tax. Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and ST is the supply curve after the tax. Answer: Answer Price S- 18 Question 18 12 10 (e) (ii) Calculate the producer surplus after the tax. Answer: 10 12 Qua Answer Question 19 (e) (ii) Tax revenue. Answer: Question 20 Price received by producers (e) (iv) Deadweight loss Quantity of cigarettes sold Answer: Price paid by consumers Answer the tax Question 21 (e) (v) Total surplus after tax Answer: S PhotoGrid
The blue curve on the following graph represents the demand curve facing a fires that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph Note: Once you enter a value is a white field, the graph and any corresponding amounts in each grey field will change accordingly. und sa Saar2. TOTAL REVENUE D Demand REBEK 4** QUANTITY() WLAN LATVC A QUANTITY (bertu Graph Input Tool Market for Goods Quantity Demanded (Un) Demand Price (Dollars per unt) On the graph input tool, change the number found in the Quanty Demended field to determine the prices that correspond to the production of 0, 2, 4, 5, 6, 8, and 10 units of output. Cakulate the total revenue for each of these production levels. Thers or the following grach, use the green ponts (triangle symbel) to plot the results. Tal Revenu 5 Calculate the total revenue of the firm produces 4 versue 3 ans. Then, calculate the may The marginal…
1. Assume that the demand for cigarettes is Qd=1600-30P and the supply of cigarettes is Qs=1400+70P: a. Calculate the equilibrium price and quantity and show them on a supplyand demand diagram. b. Suppose the government levies a $2 tax for each unit of cigarettes sold.Draw this on the diagram and calculate the new equilibrium price andquantity. c. Calculate the price elasticity of demand given these two price andquantity points. Is the demand for cigarettes price elastic or inelastic onthis part of the demand curve? Interpret the elasticity in words (i.e. If theprices rises by 10%, by what percentage will consumption fall?) d. On a graph, identify the tax revenue generated by this tax. e. Indicate each area on the graph with a letter and show in a table theconsumer surplus and the producer surplus before and after the tax. Also,indicate the deadweight loss associated with this tax. f. If your policy advisor boss wanted you to provide him/her witharguments in favor of this cigarette…
Suppose a tax is levied in the market for soda. Consider a $0.50 excise tax on producers for each soda sold. The graph illustrates the demand and supply curves for soda both before and after the tax is levied. Use the graph below to answer the remaining parts of this question. d. What is the consumer surplus generated after the imposition of the tax? Shade in this area on the graph. Instructions: Use the tool provided “CStax” to illustrate this area on the graph. Consumer surplus after the imposition of the tax is $ thousand. e. What is the producer surplus generated after the imposition of the tax? Shade in this area on the graph. Instructions: Use the tool provided “PStax” to illustrate this area on the graph. Producer surplus after the imposition of the tax is $ thousand. f. What is the total revenue generated from the tax? Shade in this area on the graph. Instructions: Use the tool provided “TR” to illustrate this area on the graph. Tax…
A recent study found that the demand an supply for Frisbies schdules are as follows:a.What are the equilibrium price and quantity of Frisbees?b.Frisbee manufacture persuade the government that frisbee production improves scientists'understanding of areodynamics and thus is important for national security.a concern Congress votes to impose a price floor $2 above the equilibrium price.What is the new market price?How many Frisbees are sold?c.Irate college students march on washington and demand a reduction in the price of Frisbees.An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor.What is the new market price?How many Frisbees are sold?
Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $30 per pound tax. Label this line 'STaxi Carefully follow the instructions above, and only draw the required object. (Enter all responses as whole numbers) The new price consumers will pay is $65 and the new price producers will receive is $ 35. The tax revenue that will be generated is $ Price 100- 95- 90- 85- 80- 75- 70- 65- 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 22 1 2 Stax 3 4 5 6 Quantity (thousands) 7 -o 8 S D 9
Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and ST is the supply curve after tax. For the market for cigarettes without the tax, indicate: (i) Price paid by consumers (ii) Price paid by producers (iii) Quantity of cigarettes sold (iv) Buyer's reservation price (v) Seller's reservation price
A4 Suppose that good X is traded in a competitive market. The market clearing price is $25.00 and the quantity supplied is 200. A proposed change in government policy is expected to cause the market price to increase by $1.50. Previous studies suggest that the price elasticity of supply is about 1.5. Assuming the supply schedule is linear, calculate the change in producer surplus from the government's policy shift. Round your answer to 1 decimal place and report it in the box below. Don't include the dollar sign, but if producer surplus decreases, be sure to include a negative sign in your response. your answer is

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