3) Suppose that the demand is described by the following function: P=397-2Q. Supply is described by P=100+0.7Q. The graphs of demand and supply are represented below 450 400 350 300 250 200 150 100 50 0 0 50 100 150 b. The equilibrium price equals space below. 200 a. On the graph above, label the axes and the lines that represent demand and supply. Show your calculations in the empty C. Calculate the consumer surplus and show your calculations below (2) Suppose that the government imposes per-unit tax of $30 per each unit sold. As a result, the consumer retail price for the product increases to $200. d. What is the quantity of product sold after the tax is imposed? Q = e. The price received by the suppliers after the tax is imposed is f. Has the consumer surplus changed after the tax is imposed? If yes, then how did it change (increased or decreased)? Shade the area that represents the consumer surplus after the tax is imposed, on the graph (1) g. The deadweight loss to the economy after the tax is imposed equals Show your calculations below (s) point)

3) Suppose that the demand is described by the following function: P=397-2Q. Supply is described by P=100+0.7Q. The graphs of demand and supply are represented below 450 400 350 300 250 200 150 100 50 0 0 50 100 150 b. The equilibrium price equals space below. 200 a. On the graph above, label the axes and the lines that represent demand and supply. Show your calculations in the empty C. Calculate the consumer surplus and show your calculations below (2) Suppose that the government imposes per-unit tax of $30 per each unit sold. As a result, the consumer retail price for the product increases to $200. d. What is the quantity of product sold after the tax is imposed? Q = e. The price received by the suppliers after the tax is imposed is f. Has the consumer surplus changed after the tax is imposed? If yes, then how did it change (increased or decreased)? Shade the area that represents the consumer surplus after the tax is imposed, on the graph (1) g. The deadweight loss to the economy after the tax is imposed equals Show your calculations below (s) point)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3)
Suppose that the demand is described by the following function: P=397-2Q. Supply is described by
P=100+0.7Q. The graphs of demand and supply are represented below
450
400
350
300
250
200
150
100
50
0
0
50
100
150
b. The equilibrium price equals
space below.
200
a. On the graph above, label the axes and the lines that represent demand and supply.
Show your calculations in the empty
C. Calculate the consumer surplus and show your calculations below (2)
Suppose that the government imposes per-unit tax of $30 per each unit sold. As a result, the
consumer retail price for the product increases to $200.
d. What is the quantity of product sold after the tax is imposed? Q =
e. The price received by the suppliers after the tax is imposed is
f.
Has the consumer surplus changed after the tax is imposed? If yes, then how did it
change (increased or decreased)? Shade the area that represents the consumer surplus
after the tax is imposed, on the graph (1)
g. The deadweight loss to the economy after the tax is imposed equals
Show your calculations below (s)
point)

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