(e) (ii) Calculate the producer surplus after the tax.Answer: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is thdemand curve before tax, S is the supply curve before tax and Sr is the supply curve after the tax.PriceS-181210V87.३10 12Qua

Producer Surplus refers to the difference between what a producer is willing to receive and what he…

Answered: (e) (ii) Calculate the producer surplus…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price $6.00 $8.00 $10.0 $4.00 $20 18 16- 14 12 10- 8 6- 4- 2 0 10 20 30 40 50 60 70 80 90 Dafter Tax D Quantity Refer to the figure above. What is the share of the tax burden per unit that sellers would pay?
The graph below represents the market for tubs of yoghurt. Answer the following questions assuming a positive per-unit tax is placed on tubs of yoghurt. P S 8.50 8 5.50 25 (a) The per-unit tax is placed on 50 55 (b) The size of the tax is $ [Select] [Select] Buyers that sellers receive after the tax is $ [Select] 80 85 (c) The price that buyers pay after the tax is $ [Select] (d) The quantity traded with the tax in place is receive $ [Select] (e) After the tax, buyers will pay $ [Select] relatively more [Select] (f) In the end, buyers pay [Select] D2 Q [Select] ✓ relative to the quantity traded without tax. per tub. ✓ less per tub. per tub. than sellers. per tub. The price tubs leading to more per tub. Sellers will because their demand curve is
(a) The supply and demand equations for a good are p-2q = 1 and p+ 2q = 9, respectively. Find the equilibrium price and quantity. A percentage [of the price] tax of 100r% is imposed. Find the new equilibrium price and quantity. What fraction of the tax paid has been passed onto the consumer? (b) If an asset is purchased at some initial time t = 0 for $200 and sold at some time t > 0 in the future, the value of the sale is given by P(t) = (2t² + 14t+200)e-¹/10, dollars. Find the stationary points of P(t) and determine their nature. Should the asset be purchased and, if so, when is the best time to sell it? [Hint: The fact that e> 2.7 may be useful.]
Now calculate the government's tax revenue if it sets a tax of $0, $2, $4, 55, 56, 58, or $10 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 200 180 160 140 120 100 40 20 o 3 TAX (Dolars per pack) 10 A Laffer Curve
1. Consider a market where the supply is given by QS = P and the demand is given by QD=20-P. (a) Suppose the government wants to raise 18¥ by imposing per unit tax on this market. What tax rate will raise the required revenue and also mini- mize the dead weight loss? (b) What is the resulting equilibrium and the dead weight loss? What is the incidence of taxation? (c) Can you think of a method for raising 18Y from this market that will (1) incur no dead weight loss and (2) be preferable to the per unit tax for both the producers and the consumers.
Solve the second part
(Answer the E) Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 + 2PIts is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 + 2P If the government provides a subsidy for tge product of Rp 10/ unit of goods, what is the price and quantity of goods in balance new E. Calculate the amount of subsidy received by consumers and manufacturers , as well subsidies issued by the government *Rp : Indonesian currency
Question 44 Please refer to the description of a tax on a market, represented by the graphic .. The amount of deadweight loss as a result of the tax is represented by the area(s) Check all that apply. F C. E.
Theoretically and graphically explain the incidence of ad-valorem tax on the equilibrium price and quantity
Price a. A. b. B. c. B+C+E + F. d. B + C. e. C. PB Po Ps L AIBI А C 15 Size of tax per unit W Qo Supply Demand Quantity If a tax is placed on the product in this market, tax revenue paid by the buyers is the are
There are a variety of taxes that a person pays when buying an airline ticket. One tax is called the LUST fuel tax. LUST stands for leaking underground storage tank. The LUST tax is to establish a trust fund to provide money for oversight and corrective action against owners of leaking underground storage tanks and provides money for cleanup of LUST sites where the owner or operator is unknown. Is it efficient for customer’s of airlines to beforced to pay the tax?
P = -4Qd +50 P = 40, +10 A tax of 8JD is imposed on every unit sold Answer the question in accordance with the following graph 1. Equilibrium quantity before tax is imposed : a) 5 b) 25 c) 15 E) Otherwise 2. Equilibrium price before tax is imposed : a) 45 b) 55 c) 70 E) Otherwise 3. Equilibrium quantity after tax is imposed : a) 30 b) 25 c) 15 E) Otherwise 4. Equilibrium price after tax is imposed : a) 45 b) 55 c) 70 E) Otherwise 5. Values of dimensions at point A: a) 0,100 b) 0,50 c) 0,120 E) Otherwise 6. Values of dimensions at point B: b) 60,0 a) 30,0 c) 50, 0 E) Otherwise 7. Portion of the tax born by consumer is: a) 30 b) 5 c) 20 E) Otherwise 8. Portion of the tax born by producer is: a) 10 b) 20 c) 30 E) Otherwise 9. The distance FC is : a) 5 b) 10 c) 50 E) Otherwise 10. The slope of the demand function is : b) -2 a) 2 c) 4 E) Otherwise hand written plz d) 10 d) 30 d) 10 d) 100 d) 50,0 d) 0,10 d) 10 d) 25 d) 80 d) -4

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(e) (ii) Calculate the producer surplus after the tax. Answer: