Price of Item A ($) Demand Schedule Supply Schedule 0 180 0 10 160 20 20 140 40 30 120 60 40 100 80 50 80 100 60 60 120 70 40 140 80 20 160 90 0 180 Fill in the following blanks: What is the pre-tax equilibrium price 45 and quantity? 90 Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60? -1 Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic)? unit elastic Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) equal The consumer surplus after taxes is 1600 The total surplus after taxes is 3200 The total tax revenue is 800 The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? decrease The government decides to impose a price floor at $20. After their action, what is the market price? 45 By what amount if any? 850 And quantity sold? 90 Is there a (surplus, shortage, neither)? neither If there is a shortage or surplus, how much is it? (0 if there isn't one) 0 They then repeal the price floor and create a price ceiling at $40. What is the market price now? 40 If there is a shortage or surplus, how much is it? (0 if there isn't one) 20 And quantity sold? 80 Is there a (surplus,shortage,neither)? shortage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please help me to ensuere that my answers are correct. Complete all of the blanks. What is the pre-tax equilibrium price Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60 ? Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic): Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) The consumer surplus after taxes is The total surplus after taxes is 3 : The total tax revenue is The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? ]By what amount if any? [ The government decides to impose a price floor at $20. After their action, what is the market price? If there is a shortage or surplus, how much is it? (0 if there isn't one) They then repeal the price floor and create a price ceiling at $40. What is the market price now? And quantity sold? 8 ]Is there a (surplus,shortage, neither)? If there is a shortage or surplus, how much is it? ( 0 if there isn't one) [

Price of Item A ($)
Demand Schedule
Supply Schedule
0
180
0
10
160
20
20
140
40
30
120
60
40
100
80
50
80
100
60
60
120
70
40
140
80
20
160
90
0
180
Fill in the following blanks:
What is the pre-tax equilibrium price 45
and quantity? 90
Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60? -1
Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic)? unit elastic
Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) equal
The consumer surplus after taxes is 1600
The total surplus after taxes is 3200
The total tax revenue is 800
The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? decrease
The government decides to impose a price floor at $20. After their action, what is the market price? 45
By what amount if any? 850
And quantity sold? 90
Is there a (surplus,shortage, neither)? neither
If there is a shortage or surplus, how much is it? (0 if there isn't one) 0
They then repeal the price floor and create a price ceiling at $40. What is the market price now? 40
And quantity sold? 80
Is there a (surplus, shortage, neither)? shortage
If there is a shortage or surplus, how much is it? (0 if there isn't one) 20

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