Demand: D(p) = 2110- 7pSupply: S(p) = 23p - 500a) First, assume that no caxes are imposed. Find the equilibrium price and quantity.Price= $Quantity =9.b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity.Price = $Quantity =8.c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer?Consumer pays $escProducer pays $9.d) How much tax revenue is generated for the government?Tax revenue = $!7:94FI29,262F2#320 F3DOD$4F4%5FSMacBook Pro***A6e tv AF6◄◄&7F7► 11*OFBF9Instructions ^F10FIO

To calculate the equilibrium in the market we equate either the quantity or the price in both…

Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ 8. Quantity = b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Producer pays $ 9- Quantity = c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ 9-

Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ 8. Quantity = b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Producer pays $ 9- Quantity = c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ 9-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

12. Let the inverse market demand and supply be D-¹(q) = 14 - 2q and S-¹(q) = 2 + q. Find the equilibrium price and quantity for a competitive market. Find the equilibrium quantity and the prices for the consumer and seller when there is a quantity tax of 2 per unit imposed. Calculate the deadweight loss and the tax revenue.
(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? 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? Please do not use chat gpt and answer the best way it can be.
The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 26.00 18.00 10.00 Demand Result Per-unit tax B D F 33 U 20 E 36 QUANTITY (Blinkies) Complete the following table, given the information presented on the graph. $ Price consumers pay before tax $ Equilibrium quantity before tax Supply Value In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept Producer surplus after the tax is imposed Consumer surplus after the tax is imposed Tax revenue after the tax is imposed A U B 0 0 с 0 0 D 0 0 E 0 F 0 0
If a tax is levied on the buyers of a product, the tax burden will fall entirely on the buyers. A.) False B.) True
None
V surplus is the difference between the highest price a consumer is willing to and the price the consumer actually pays. This component of economic surplus is illustrated in the diagram to the right by area Do Quantity (per time period)
Please answer the following. A diagram and one paragraph should help to support your answer. Question: With consideration for elasticity (especially PED), what would be one industry in which the government instituting a subsidy would make sense and why?
Question attached
The demand for tomatoes is Q = 40-4P and the supply of tomatoes is Q = P +10. Answer the following questions. (a) Suppose that $1 per unit tax is levied on the consumers. Who bears the economic incidence of this tax? (b) Calculate the deadweight loss (c) Suppose that stores will pay $1 per unit tax directly. What will happen to the "sticker price" on tomatoes? How will the size of the consumer tax burden change? (d) Suppose that tax is increased to $2 per unit on the consumers. Calculate the deadweight loss. Compare the size of the deadweight loss with (b).
Last 3 questions d, e & f
Studying and not sure how to do these
Question 4 Given: QD = 160-5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer. Calculate the following: (a) The equilibrium price and equilibrium quantity. (b) Consumer and producer surplus before the tax. (c) Consumer surplus after the tax. (d) Producer surplus after the tax. (e) Deadweight loss. (f) Government revenue.