Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 20 Supply 12 10 8 Demand ²4 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure 8-6. What happens to producer surplus when the tax is imposed in this m a. Producer surplus falls by $1,800. Ob. Producer surplus falls by $600. Oc. Producer surplus falls by $2,100. Od. Producer surplus falls by $900. 18 16 14

Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 20 Supply 12 10 8 Demand ²4 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure 8-6. What happens to producer surplus when the tax is imposed in this m a. Producer surplus falls by $1,800. Ob. Producer surplus falls by $600. Oc. Producer surplus falls by $2,100. Od. Producer surplus falls by $900. 18 16 14

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 8-5 Price Pa P₁ P₂ O d. $8 B Price D 2 F -Tax ● a. D+EX b. C+E C. B+C d. A Figure 8-5 G 92 C Refer to Figure 8-5. Assume the tax was levied on the consumer. Which area represents the reduction in consumer surplus? E 9₂ D Quantity
Figure 8-2 The vertical distance between points A and B represents a tax in the market. PRICE 12 11 10 2100 9 Supply 8 7 5 4 3 2 1 Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY Refer to Figure 8-2. The loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is O a. $3. O b. $0. ○ c. $1. O d. $2. <
2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Find the equilibrium price and quantity ii. If a tax of GH¢ 10.00 per unit is imposed calculate the equilibrium price and quantity iii. The distribution of tax Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate th profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢ 15 in the market
Note: please answer the need 7and,8
If cheesecake is a normal good, then which of the following could be the value of income elasticity? +0.2 +0.8 +1.5 All the given answers.
Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 D 40 60 Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all work. а. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what that value is? C. How much is the consumer surplus before the tax? d. How much is producer surplus before the tax? е. How much is the consumer surplus after the tax? f. How much is producer surplus after the tax? g. How much is the deadweight loss as a result of the tax
What is the buyers’ share of the burden of the tax _______?
Text Box 7rice 16 Suppose the government imposed a per unit tax of S6 on buyers. 14 12 Work out the following. 10 Answer Equilibrium Quantity after tax Price paid by buyers after tax (P») Price received by sellers after tax (P,) Tax Revenue collected by government The burden of tax on buyers 20 10 4 120 2. The burden of tax on Sellers 4 10 20 30 40 50 60 70 80
9) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. $30 $20 $10 Price (P) of airline tickets (in dollars per ticket) How much of the per-ticket tax is paid by passengers? $40 230 200 190 2850 3000 Swith tax Sno tax D Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day)
6) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. O $10 $30 $40 Price (P) of airline tickets (in dollars per ticket) What is the amount of the tax per ticket from Boston to Tampa? $20 230 200 190 2850 3000 with tax D Sno tax Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day)
120 110 100 C. Supply 90 80 70 60 50 40 30 20 10 Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure E. The amount of deadweight loss as a result of the tax is O a. $600. b.$400. c. $250. O d. $50. PRICE
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