I.Refer to the following Graphsa.) When a per unit tax is imposed on the consumer of the product, identify how the consumerand producer surplus changes, identify the deadweight loss and the amount of the total tax thatwill be received by the government.PricePTaxBCPEFGEIP1Dm1HKDmTaxQEQE2QuantityProducer Surplus before tax =Consumer Surplus before tax =Producer Surplus after tax =%3DConsumer Surplus after tax =Deadweight LossTotal Tax

Consumer surplus: It is the difference between the amount that the consumer is ready to pay and…

Answered: I. Refer to the following Graphs a.)…

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 P2 P1 P3 Figure A-1 Ice Cream I NI KI X I I W q2 ql S2 S1 D Quantity (scoops) Figure A-1 represents the market for ice cream before and after a per-scoop tax. What does the area w represent? O the resulting loss of producer surplus O the resulting loss in consumer and producer surplus O the resulting tax revenue generated O the resulting consumer surplus generated
Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is the (a) burden, tax revenue? Then replace the % tax with $40 per unit tax. What is the tax burden and tax revenue? 200 I0 120 00 PO GO 20 Qtr 140 IGO I O % tax: burden on consumer burden on producer tax revenue Unit tax: burden on con burden on producer sumer tax revenue Which tax as a consumer do you prefer?
The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply A 16, 18 21.00 18.00- D E 15.00 F 12 16 QUANTITY (Pinckneys) PRICE (Dollars per pinckney)
Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from SO to S1. The lost consumer surplus of this tax is equal to the area: 0 cdjh. deij. Ohji. đến khi. INIMI 43 Isiswissw h k $1 SO Demand Quantity
1. The demand for the product S is Q = 500 – 8P and its supply is Q = 200 + 4P. The good is currently untaxed, but the government needs to raise tax by taxing per unit of the good. a. Calculate excess burden for the product S. b. Calculates marginal excess burden for the product S? %3D The exact amount of the tax is not specified.
1) Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact.
Question 4 Figure #3: The graph below represents a $10 per unit tax on a good then the amount bought and sold in the market is only 4 units. Note that Q represents quantity and P represents price. P. 24 20 A 16 Supply 12 GIH 8. 4. K M Demand 4 6 10 12 14 16 Refer to Figure #3. The government collects tax revenue that is (or are) the area(s) represented by the area OF-G-L OL OB-D Oc-F
Oc
Use the following to answer questions 14-17. Suppose the government imposes a tax of 6 (t = 6) %3D on suppliers for each unit of sunflower they sell in the market. 14. After taxation, what is the new price that consumers actually pay for sunflower? what is the new quantity demanded for sunflower? 15. What is the new price that suppliers actually receive after taxation? 16. What is the new consumer surplus, new producer surplus, and new government revenue after taxation (in values)?
Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000
QUESTION 23 Refer to the graph below for a market. ↑Price 48 Supply 44 40 36 32 28 24 20 16 12- 8 4 Demand ++++ Quantity 10 15 20 25 30 35 40 45 50 55 60 Assuming that the government imposes a tax size of AB in the above market, Based on that calculate 1. Consumer surplus after taxes 2. Producer surplus after taxes 3. Tax revenue after taxes 4. Deadweight loss if any after taxes Note: Make sure to calculate the exact dollar amount with the steps. T T T F Paragraph 只i8公 Arial 3 (12pt) O f • Mashups HOO HTML CSS Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Do all 4 parts otherwise none

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