Answered: P P=7 lo=7 On the following diagram if…

P P=7 lo=7 On the following diagram if there is a tax of $3 dollars imposed on sellers, what is the tax burden on sellers? $1 $2 $3 $7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. The government will impose Php 1.5 as sales tax please answer all questions. Thanks
Suppose that the Gondwanaland Chairman of Production, who sets the governmental price floor for gosum berries, in an effort to assist the gosum berry producers to have a higher income, set the price floor at $70 per barrel. In that particular year, the amount of gosum berries produced at the $70 price floor was 700 barrels per month. To support the price of gosum berries, the Chairman of Production’s Office had to purchase 400 barrels per month. The accompanying chart and diagram shows supply and demand curves illustrating the market for Gondwanaland gosum berries. Price Quantity Supplied Quantity Demanded $120 1,200 $110 1,100 $100 1,000 0 $90 900 100 $80 800 200 $70 700 300 $60 600 400 $50 500 500 $40 400 600 $30 300 700 $20 200 800 $10 100 900 $0 0 1,000 The accompanying diagram shows supply and demand curves illustrating the market for Gondwanaland gosum…
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Figure 50-5: Gains from Trade Price $6 5 4 3 2 O $0. O $22.50. $26.25. O $52.50. 10 $30. 20 30 40 (Figure 50-5: Gains from Trade) The equilibrium price in this market is $2.50 and the equilibrium quantity is 25 units. If the government imposes a tax of $3 in this market, only 10 units will be sold, and the deadweight loss will equal: S D₁ 50 Quantity 60
09. Given a price ceiling set at $8, what would be the quantity traded in this market? a) 4 b) 5 c) 7 d) 8 e) 9 f) 12 g) 13 h) 16 i) 17 10. Given a price floor set at $16, what would be the quantity traded in this market? a) 4 b) 5 c) 7 d) 8 e) 9 f) 12 g) 13 h) 16 i) 17 12. Which of the following statements are true? a) Economists call the farm price support system "welfare for the rich" b) There is a fixed amount of jobs in the economy. c) Price ceilings and price floors cause economic inefficiency and corruption. d) General price controls is considered by economsts among the most stupid policies. e) Only Democrats support price control policies.
Homework: Supply and Demand: An Initial Look 9. Effect of a tax on buyers and sellers The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Hint: To see the impact of the tax, first enter the value of the tax in the Tax on Sellers field. Adjust the value in the price field to move the green line to the after-tax equilibrium so that quantity demanded equals quantity supplied. PRICE (Dollars per pair). 2 2 2 2 2 2 2 2 no 50 45 40 35 30 25 20 15 10 5 Demand Supply 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Pairs of jeans) Graph Input Tool Market for Jeans. Price (Dollars per pair) Quantity Demanded…
1. Assume that the equilibrium price is at $3 and equilibrium quantity is at 40 units of a product. Then, imagine that suddenly any of determinants of demand, other than the price of the product, caused demand to increase while, at the same time, one of determinants of supply, other than the price of the product, caused supply to decrease. TASK: First, draw the demand and supply graph to show the original equilibrium price at $3 and equilibrium quantity at 40 units. Second pick ONE specific DETERMINANT of DEMAND and ONE specific DETERMINANT of SUPPLY Third, show in the graph what it looked like if demand increased and supply decreased (select where you think that the new price and quantity would change to), what the new equilibrium price and equilibrium quantity would be, after both changes in demand and supply occurred. Fourth, in a couple of words, write down what would be YOUR new equilibrium price and equilibrium quantity. IThat is, tell us that the original equilibrium price…
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QUESTION 18 Exhibit 19-6 Price of Good X 0 Quantity of Good X Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two equilibrium prices are $2.20 and $2.75. What is the tax revenue collected from the tax that shifted S 1 to S 2 when D 1 is the relevant demand curve? a. $440 Ob. $600 O c. $900 Od. $800
16 12 8 5 сл 2 20 Reference: Ref 4-13 40 O C. $70 OD $210 60 D (Figure: Determining Surplus and Loss) Consider the graph. If the the government imposes a price floor of $12, calculate the total suplus. OA. $20 B. $280
Imagine that the demand curve for beer is given by P=9-Q and supply for beer is given by P=1+Q. What is the deadweight loss associated with a tax of $3 per unit? 12 O 2.25 O None of the above. O 6.25
Suppose that the local government of Santa Fe decides to institute a tax on seltzer producers. Before the tax, 15 million packs of seltzer were sold every month at a price of $11 per pack. After the tax, 9 million packs of seltzer are sold every month; consumers pay $14 per pack, and producers receive $7 per pack (after paying the tax). The amount of the tax on a pack of seltzer is $ burden that falls on producers is $ O True per pack. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on consumers. O False per pack. Of this amount, the burden that falls on consumers is $ per pack, and the