Price $150 200 250 300 350 400 450 500 550 600 650 1. Equilibrium price $350 2. Quantity 50 Quantity Demanded 100 90 NO 70 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Equilibrium price $350 and quantity? 50 60 50 3. Consumer Surplus? 6250 4. Producer Surplus? 6250 5. What is the total surplus? 12500 6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 b. Resulting amount of surplovshortage if any (0 if no 0 8. Remove the price floor Impose a price ceiling $50 below the equilibrium price aEquilibrium price $350 and quantity? 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 70 NO 90 100 How much deadweight loss is created (0 if none)?
Price $150 200 250 300 350 400 450 500 550 600 650 1. Equilibrium price $350 2. Quantity 50 Quantity Demanded 100 90 NO 70 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Equilibrium price $350 and quantity? 50 60 50 3. Consumer Surplus? 6250 4. Producer Surplus? 6250 5. What is the total surplus? 12500 6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 b. Resulting amount of surplovshortage if any (0 if no 0 8. Remove the price floor Impose a price ceiling $50 below the equilibrium price aEquilibrium price $350 and quantity? 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 70 NO 90 100 How much deadweight loss is created (0 if none)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Price
$150
200
250
300
350
400
450
500
550
600
650
1. Equilibrium price $350
2. Quantity 50
3. Consumer Surplus? 6250
4. Producer Surplus? 6250
500
7. Remove the tax. Imposes a price floor $100 below the equilibrium price
a Fiquilibrium price $350
and quantity? 50
Quantity Demanded
100
90
5. What is the total surplus? 12500
6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000
b. Resulting amount of surplus/shortage if any (0 if none) 0
8. Remove the price floor Impose a price ceiling $50 below the equilibrium price
a Equilibrium price $350
and quantity? 50
b. Resulting amount of surplus/shortage (0 if none) o
80
70
60
50
40
30
20
10
0
Quantity Supplied
10
20
30
40
50
60
70
80
90
100
.
How much deadweight loss is created (0 if none)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F228dbc42-5b56-484a-b4b2-e9259de9d0e2%2Fbfe668eb-5c49-4337-8f61-eebe8b5a391b%2Feqgjdvv.jpeg&w=3840&q=75)
Transcribed Image Text:Price
$150
200
250
300
350
400
450
500
550
600
650
1. Equilibrium price $350
2. Quantity 50
3. Consumer Surplus? 6250
4. Producer Surplus? 6250
500
7. Remove the tax. Imposes a price floor $100 below the equilibrium price
a Fiquilibrium price $350
and quantity? 50
Quantity Demanded
100
90
5. What is the total surplus? 12500
6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000
b. Resulting amount of surplus/shortage if any (0 if none) 0
8. Remove the price floor Impose a price ceiling $50 below the equilibrium price
a Equilibrium price $350
and quantity? 50
b. Resulting amount of surplus/shortage (0 if none) o
80
70
60
50
40
30
20
10
0
Quantity Supplied
10
20
30
40
50
60
70
80
90
100
.
How much deadweight loss is created (0 if none)?
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