Last, consider a tax on restaurants that serve liquor that would reduce the market supply by the same quantity as thequota (by increasing the cost of production from that represented by supply curve S1 to that represented by supply curveS²), as illustrated in the figure to the right.The effect of the quota on consumer surplus (ACS) for consumers isQ, unitsACS=The effect of the quota on producer surplus (APS) for drivers is(Enter your response rounded to two decimal places.)The effect of the quota on city revenue isDeadweight loss (DWL) isAPS=DWL =$, Price per unitA82-S²Bсe₁P1DEFDQ2Q₁Q, units

Answered: Image /qna-images/answer/636ebea1-8e04-40d8-8137-8989b42bfbf3.jpg

Answered: Last, consider a tax on restaurants…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Given, price functions for quantity supplied, Qs and quantity demanded Qd: P = 40 - 2Qd p = 10 + 3Qs If the price increases by 20%, find the following: I) New Consumer Surplus II) New Producer Surplus III) New Total Surplus
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x)=(x−9)^2, S(x)=x^2+6x+57
In the market for hand sanitizers the demand function is given by: q = 80 - p, where q is the quantity of hand sanitizers (in thousands) and p is the price of hand sanitizers in dollars. Suppose the current market price for hand sanitizers is $4. 1. What is the inverse demand function equal to? Draw it in a diagram. 2. At a price of $4, what is the level of consumer surplus? 3. Due to the unprecedented COVID-19 pandemic, people's preferences for sanitizing their hands change in favor of hand sanitizers. In fact, for any given price of hand sanitizers, people now want to purchase 20 units (in thousands) more hand sanitizers. o What is the new demand curve? o What is the new inverse demand curve? o Draw the new inverse demand curve in your diagram. 4. Suppose that after the increase in demand, the new price becomes $8. What is consumer surplus equal to at this new price (and with the new inverse demand curve)? 5. [Challenge Question] What would the consumer surplus be if the government…
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Find the consumer surplus and producer surplus for the demand and supply functions asfollows respectively. pz (x) = -0.2x +8, pi (x) = 0.1x + 2. Please interpret the meaning of both by a sketch.
Imagine the market for a phone card has a demand function of QDX = 38 – 2PX and a supply function of QSX = 4PX - 10, where PX is the price of the phone card. If PX is 10, calculate the producer surplus (PS).
Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 Jacques
Rhea's inverse demand for a good is given by p = 15.00 - (1.00 × q). Assuming that there are enough suppliers to meet her demand, if the per-unit price increases from p = 3.50 to p = 7.50, what is the absolute value of her change in consumer's surplus? (Round to the nearest two decimals.)
Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus. Round all values to the nearest integer. -0.005x; p = D(x) = 110 e p = S(x) = 25 e 0.005x The value of x at equilibrium is (Round to the nearest whole number as needed.)
The inverse supply function for coal is PS = 2 + QS. The inverse demand function for coal is PD = 20 - 2QD. By how much does consumer surplus increase when a $3 subsidy to consumption is introduced? (Assume that no tax was in place before the subsidy is introduced).
If the inverse market demand function for a good is P(Q) = 100 - 3Q and the inverse market supply function for a good is P(Q)= ) = 2Q, what are the consumer and producer surplus in the market equilibrium? The consumer surplus is $ 600. (round your answer to two decimal places.) The producer surplus is $400.00. (round your answer to two decimal places.)
Suppose there are two types of passengers: business travelers (B) and vacationers (V). The demands for airline tickets between Chicago and New York for both types of passengers are illustrated in the graph to the right. If an airline can price discriminate between the two types, then it should charge an airline ticket price of $ to business travelers (enter a numeric response using an integer) 800- 750- 700- 650 2600 Price and cost (dollars per airline ticket) 550- 500- 150 450 400- 350- 300- 8250- 200- 150- 100- 50- qº -MC Dv Da MR₂ MRV o+ 0 100 200 300 400 500 600 700 800 900 1000 Quantity of airline tickets

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