PriceStA.ofP1C.G:HPAQuantityThe tax revenue collected by the government when this tax is imposed isequal toSelect one:O a. (P2-P4)Q1%3DO b. (P2- P3)Q1Oc. (P2- P4)Q2O d. (P1- P3)Q2

tax revenue is the amount that is gained by the government of the country in the form of revenues…

Answered: P2 P4 Q. Quantity The tax revenue…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In game of matching coin, Player A win Rs. 8 if both coins show head and Rs. 1 if both are tails. Player B win Rs. 3 when coins do not match. Given the choice and being Player A or Player B, which would you choose and what would be your strategy. Required: Solve the game by two person zero sum game (mixed strategy)
Consider the following supply and demand function, QD = 65 − 2P and QS = 1.5P − 5, and assume a $17.50 excise tax is collected from consumers. (a) Calculate price and quantity in this market before (P1 and Q1) and after the tax (P2 and Q2). (b) What is the amount of tax revenue that is collected from con- sumers, producers and in total? (c) What is the relative tax burden of consumers and producers? (d) Show how the elasticity of supply and demand determine the shar- ing of the tax burden. (e) What is the relative tax burden of producers and consumers if the tax is collected from producers, instead?
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(d) (e) (f) Detailed answers
If the price of ice cream increases from $8 to $10 a gallon, quantity demanded of frozen yogurt increases from 120 to 138 gallons, ceteris paribus. As a result, the percentage change in the price of ice cream is 0.2222 % 22.22 % -0.2222 % O-22.22%
Assuming a $7 per unit tax is imposed, the new quantity traded is _____. a) 10 b) 12 c) 14 d) 16 e) 19 f) 28 g) 36 h) 48 i) 66 j) 70 k) 84

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P2 P4 Q. Quantity The tax revenue collected by the government when this tax is imposed is equal to Select one: O a. (P2- P4)Q1 O b. (P2- P3)Q, O c. (P2 - P4)Q2 O d. (P1- P3)Q2