Figure 4-8$60502060 70Quantity (millions of tons)Refer to Figure 4-8. The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal.A $40-per-ton tax on soft coal is levied, shifting the supply curve from S¡ to S2. Imposing the tax increases theequilibrium price of soft coal from$20 to $60 per ton.$20 to $50 per ton.O $50 to $60 per ton.$50 to $90 per ton.Price (per ton)

A market is a place where the buyers and the sellers will interact with each other and the exchange…

Answered: Figure 4-8 $60 50 20 60 70 Quantity…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate the producer surplus when a price floor of $18 is imposed in the market. The graph is attached for your convenience. O $40 O $240 O $200 $60 Price (dollars per pound) $21 18 15 13 11 40 80 Supply Demand Quantity (pounds)
The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) Between the prices of $9 and $10, the elasticity of demand is O A. 0.68. B. 0.88. C. 1.46. D. 1.13. E. 0. $10 $9 $8 $7 $6 Quantity Demanded (thousands of person-visits per year) 6 7 8 9 10
Price $20- 18- 16- 14 12 10 8 6- 4 2- 0 10 20 30 40 50 90 100 Quantity Refer to the Figure 4-3. If the price in this market is currently $14, what would happen? O a. There would be a shortage of 20 units so producers would increase production. O b. There would be a surplus of 20 units and the price would tend to fall. O c. There would be a shortage of 40 units so producers would increase production. O d. There would be a surplus of 40 units and the price would tend to fall.
PRICE (Dollars per box) 50 45 40 35 20 15 10 5 0 + 0 Supply In this market, the equilibrium price is s Brico Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of boxes) Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) 15 500 per box, and the equilibrium quantity of blueberries is Quantity Supplied (Millions of boxes) million boxes. 210 For each of the prices listed in the following table, determine the quantity of blueberries demanded, the quantity of blueberries supplied, and the direction of pressure exerted on prices in the absence of any price controls. Quantity Domandod Quantity Supplied
PRICE (Dollars per pack) 50 45 TAX REVENUE (Dollars) 40 35 30 25 400 360 320 At this tax amount, the equilibrium quantity of cigarettes is government collects $ in tax revenue. 280 240 0 Suppose the government imposes a $10-per-pack tax on suppliers. 200 160 120 0 5 80 40 Supply Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 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. 0 Demand Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 10 15 20 25 30 35 40 45 50 QUANTITY (Packs) 5 True O False Graph Input Tool Market for Cigarettes Quantity (Packs) 10 15 20 25 30 TAX (Dollars per pack) Demand Price (Dollars per pack) Tax…
Price 20 18 16 14 12 10 х $1.200 0 300 400 500 $2.000 S1 SO Quantity Assume that the market in the graph above is at an initial equilibrium price of $10 and an equilibrium quantity of 500 units. If the government decides to add a $4 per-unit tax on this good, it will be able to collect the following amount of tax revenue: Demand 1000
Consider the following figure. What is the Consumer Surplus in this market when the market is at equilibrium? $ Demand and Supply Price $10 $9 - Quantity Demanded $8 $7 Quantity Supplied $6 $5 $4 $3 $2 $1 $0 O 1 2 3 4 5 6 7 8 9 10 Quantity
Price of Gasoline P3 P₂ P₁ 0 9₂ 9₂ 52 D S₁ Price Ceiling Quantity of Gasoline Refer to the figure above. With a price ceiling present in this market, what will happen when the supply curve for gasoline shifts from S₁ to S₂? The market price will stay at P₁ due to the price ceiling. A shortage will occur at the price ceiling of P2. The price will increase to P3. A surplus will occur at the new market price of P₂.
$4.00 $3.50- $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 5 10 15 20 25 30 Quantity A price floor set at a price of $1.00 will result in O no change in the market outcomes. a surplus of 20 units. a surplus of 10 units. a shortage of 20 units. a shortage of 10 units. Price O O Supply Demand 35 40
Consider the following figure. Price $4.00 O $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 5 15 Quantity A price floor set at $2.50 will result in 10 a surplus of 10 units. a surplus of 5 units. a shortage of 10 units. 20 25 30 a shortage of 5 units. no change to the market outcomes. Supply Demand 35 40
Price (dollars per gallon) S2 $5.50 3.50 2.50 D Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? 1) $2.00 O 2) $3.50 3) $2.50 4) $1.50
4. Which of the following statements is (are) correct? (x) When quantity supplied responds very little to changes in price, supply is said to be inelastic. (y) If the quantity supplied changes substantially when the price of the good changes a small amount, then the coefficient of price elasticity of supply is a number larger than one and supply is elastic. (z) Holding all else constant, if a paper manufacturer increases production by 12 percent when the market price of paper increases by 15 percent, then the price elasticity of supply must be inelastic since the coefficient of price elasticity of supply is equal to 0.80. A. (x), (y) and (z) C. В. (x) and (y) only (x) and (z) only E. (x) only D. (y) and (z) only

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