Price exe P3 P₁ P2 1 OA A B QB+C QD+E I F Tax E 02 H S Refer to Figure 4-25 4-25.png. The tax causes a reduction in producer surplus. Which of the following represents the actual reduction in producer surplus (which represents the actual amount of producer surplus taken from producers as a result of the tax)? 3 Quantity

Price exe P3 P₁ P2 1 OA A B QB+C QD+E I F Tax E 02 H S Refer to Figure 4-25 4-25.png. The tax causes a reduction in producer surplus. Which of the following represents the actual reduction in producer surplus (which represents the actual amount of producer surplus taken from producers as a result of the tax)? 3 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 8-5 Suppose that the government imposes a tax of P3 - P1. P4 P3 P2 Pl Price F. 4 CO OA. O F G D+H. 02 OC+H. 2 H I Q1 Refer to Figure 8-5. The tax causes a reduction in producer surplus that is represented by area Supply Demand Quantity
anity 9. Refer to the diagrams posted with the problem set instructions. If the price ceiling is binding, determine: a. the area of consumer surplus. b. the area of producer surplus. e une area of consumer surplus in $$$. C
Figure 8-4 Suppose the government imposes a $10 per unit tax on a good. PRICE 24 22 20 18 16 14 12 10 8 6 4 2 A B D J K C Refer to Figure 8-4. The tax causes consumer surplus to decrease by the area Oa. A. Ob. A + B + C. OC. A + B + C + D + F. Od. B + C. G M Supply Demand 3 6 9 12 15 18 21 24 27 30 33 36 QUANTITY
A10 An effective price ceiling causes a loss of: a) consumer surplus for certain and possibly producer surplus as well. b) producer surplus for certain and possibly consumer surplus as well. c) consumer surplus only. d) neither producer nor consumer surplus.
Using the supply and demand data for wheat below, what would happen if the government placed a $3 per bushel tax on wheat? Bushels demanded 45 50 56 61 67 Price per bushel $6 $5 $4 LA LA LA $3 $2 Bushels supplied 77 73 68 61 57 O the producer price would fall, the consumer price would rise, and the quantity sold would increase. The producer price would fall, the consumer price would rise, and the equilibrium quantity would fall O Both the consumer price and the producer price would rise the consumer price would rise by less than $3 while the producer price would fall by more than $3 O the equilibrium consumer price would rise by $3
Price (dollars per hour) 7.00 6.60 6.00 5.60 5.00 0 1 2 3 4 5 6 7 8 Quantity (thousands of frisbees) Figure 6.3.1 OB) $5.60. S + tax Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed. On each frisbee, the sellers' burden of the tax is OA) $0.60. OC) $0.40. S OD) $6.60.
Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is the (a) burden, tax revenue? Then replace the % tax with $40 per unit tax. What is the tax burden and tax revenue? A 180 160 740 120 8 100 PO GO 40 20 % tax: Unit tax: jap 180 140 160 110 200 220 240 260 20 burden on consumer burden on consumer burden on producer burden on producer -S tax revenue tax revenue Qtr A
The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. (? Demand Supply A 32.00 В 24.00 D E 16.00 10 20 QUANTITY (Pinckneys) PRICE (Dollars per pinckney)
Ch 8: Practice Sheet 2 Figure 8-5 Price 922 16 1. Refer to Figure 8-5 above. What happens to consumer surplus when a tax is imposed in this market? a. It falls by $900 b. It falls by $1800 c. It falls by $2,700 d. It falls by $3,600 2. Refer to Figure 8-7 below. A tax levy forced consumers to pay a price of $18 per unit. What is tax rate (size) imposed in this market? a. $10 ²00 b. $18 c. 58 d. $12 3. Refer to Figure 8-7 below. After the tax levy, the burden of tax on consumers is a. $18 b. $10 c. $8 d. 56 4. Refer to Figure 8-7 below. After the tax levy, the burden of tax on producers is a $10 b. $8 c. 56 d. 54 G a 5. Refer to Figure 8-7. One effect of the tax is to a. reduce consumer surplus from $60 to $24. c. create a deadweight loss of $24. 6. Refer to Figure 8-7. One effect of the tax is to a. reduce the quantity demanded from 8 to 4. c. create a tax revenue of $40. 10 Supply Demand 14 16 2 b. reduce producer surplus from $32 to $8. d. All of the above are correct. b. reduce the…
a. $7 b. $3 c. Between $5 and $7 d. Between $3 and $5 7 PRICE EL 3 60 100 fer to Figure 6-11. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is posed? QUANTITY
Price te ng 20 18 16 14 12 10 8 6 4 O -~ 2 8 10 Quantity What is the amount of producer surplus after the government imposes the excise tax on the market? C Multiple Choice ооо 4 $40 $32 $9 $7 6 12 14 S₂ 16 S
A P1 P2 P3 Quantity (Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus. If the price is at P1. The government set a price ceiling at P3, identify the area or areas that represent the new total consumer surplus. O A and B O A and B and C O A and B and C and D OA O A and B and D F.