Given the following information: Demand: Qd = 200 - 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed, (a) Considering that the government will earn revenue overall, do you think society benefits from such a move • Yes or No Buyer price • Seller price • Quantity traded (b) Equilibrium price before the tax (e) Buyer's price after-tax (c) Equilibrium quantity before the tax (d) Demand and Supply equation after-tax. • Demand equation • Supply equation (f) Seller's price after-tax (g) Quantity after-tax (h) Tax revenue 4 (1) Deadweight loss of the tax 4

Given the following information: Demand: Qd = 200 - 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed, (a) Considering that the government will earn revenue overall, do you think society benefits from such a move • Yes or No Buyer price • Seller price • Quantity traded (b) Equilibrium price before the tax (e) Buyer's price after-tax (c) Equilibrium quantity before the tax (d) Demand and Supply equation after-tax. • Demand equation • Supply equation (f) Seller's price after-tax (g) Quantity after-tax (h) Tax revenue 4 (1) Deadweight loss of the tax 4

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

Given the following information:
Demand: Qd = 200 - 5P
Supply: Qs = 5P
If a quantity tax of $2 per unit sold is imposed,
(a) Considering that the government will earn revenue overall, do you think society benefits from such a move?
• Yes or No
♦
Buyer price
• Seller price
• Quantity traded
(b) Equilibrium price before the tax
(e) Buyer's price after-tax
(f) Seller's price after-tax
(c) Equilibrium quantity before the tax
(d) Demand and Supply equation after-tax.
• Demand equation
Supply equation
(g) Quantity after-tax
(h) Tax revenue
¶
(1) Deadweight loss of the tax
♦
O
46

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