How do I find the change in equilibrium price after tax? d. What is the numerical value for producer surplus?3 6 91215 18 2124 27 Q2. Use the graph below for the following: (LO2)PAa. On the graph, demonstrate the effect of a $1 tax onequilibrium quantity and equilibrium price.$6.00$5.00b. What is the approximate new equilibrium price ofshoes? Why didn't the trice rise by the amount of theis$4.00tax?$3.00$2.00c. Shade the amount of the tax paid by consumers andlabel it A; shade the amount of the tax paid by$1.00producers and label it B.3 6 91215 18 2124 27MacBook ProF4F7FA

As the tax affects supply, the supply curve tends to shift upward, thus establishing the new…

Answered: PA a. On the graph, demonstrate the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How do I find the change in equilibrium price after tax?

d. What is the numerical value for producer surplus?
3 6 9
12
15 18 21
24 27 Q
2. Use the graph below for the following: (LO2)
PA
a. On the graph, demonstrate the effect of a $1 tax on
equilibrium quantity and equilibrium price.
$6.00
$5.00
b. What is the approximate new equilibrium price of
shoes? Why didn't the trice rise by the amount of the
is
$4.00
tax?
$3.00
$2.00
c. Shade the amount of the tax paid by consumers and
label it A; shade the amount of the tax paid by
$1.00
producers and label it B.
3 6 9
12
15 18 21
24 27
MacBook Pro
F4
F7
FA

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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