Price P₂ P B Supply+tax K O₂ Q Consumer surplus before the tax Based on the figure above, characterize each of the following terms by their area. Assume P, is the equilibrium price, P2 is the price consumers pay, and P2-tax is the price sellers charge. It may be helpful to take a picture of the figure to avoid having to scroll up and down. Producer surplus before the tax Economic surplus before the tax Consumer surplus after the tax Supply Producer surplus after the tax Quantity [Choose] [Choose] [Choose] [Choose] [Choose]

Price P₂ P B Supply+tax K O₂ Q Consumer surplus before the tax Based on the figure above, characterize each of the following terms by their area. Assume P, is the equilibrium price, P2 is the price consumers pay, and P2-tax is the price sellers charge. It may be helpful to take a picture of the figure to avoid having to scroll up and down. Producer surplus before the tax Economic surplus before the tax Consumer surplus after the tax Supply Producer surplus after the tax Quantity [Choose] [Choose] [Choose] [Choose] [Choose]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Price P2 P1 P3 Figure A-1 Ice Cream I NI KI X I I W q2 ql S2 S1 D Quantity (scoops) Figure A-1 represents the market for ice cream before and after a per-scoop tax. What does the area w represent? O the resulting loss of producer surplus O the resulting loss in consumer and producer surplus O the resulting tax revenue generated O the resulting consumer surplus generated
7.7 pleaase explain
12. Let the inverse market demand and supply be D-¹(q) = 14 - 2q and S-¹(q) = 2 + q. Find the equilibrium price and quantity for a competitive market. Find the equilibrium quantity and the prices for the consumer and seller when there is a quantity tax of 2 per unit imposed. Calculate the deadweight loss and the tax revenue.
Suppose the vertical distance between points S and R represents a tax in the market. Please answer the questions under the case of the tax. What area is the tax revenue to the government? What is the amount of the tax revenue? What area is the consumer surplus represented by? What is the amount of consumer surplus? What area is the producer surplus represented by? What is the amount of producer surplus? What area is the deadweight loss represented by? What is the amount of deadweight loss? What is the buyers’ share of tax burden? What is the sellers’ share of tax burden?
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 16, 18 21.00 18.00- D E 15.00 F 12 16 QUANTITY (Pinckneys) PRICE (Dollars per pinckney)
In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is tax revenue out of this tax? (Remember that the tax does not change the demand and supply curves).
Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from SO to S1. The lost consumer surplus of this tax is equal to the area: 0 cdjh. deij. Ohji. đến khi. INIMI 43 Isiswissw h k $1 SO Demand Quantity
Use the figure below to answer the following question.What is the amount of consumer surplus after the government imposes the excise tax on the market? Question 18 options: A) $540 B) $486 C) $162 D) $144
Suppose that the demand curve for wheat is and the supply curve is Producer surplus Q = 400-40p The government provides producers with a specific subsidy of s= $2 per unit. How do the equilibrium price and quantity change? The equilibrium price decreases by $1 and the equilibrium quantity increases by $40 units. (Enter numeric responses using real numbers rounded to two decimal places.) What effect does this tax (subsidy) have on consumer surplus, producer surplus, government revenue, welfare, and deadweight loss? Consumer surplus increases by $ 220. by $ Qs = 40p.
iven the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the total surplus after tax.
24 22 20 A 18 Supply 16 14 12 10 B 4 Demand 3 6 9 12 15 18 21 24 27 30 33 36 QUANTITY Consider the market described by the graph above where the vertical distance between points A and B represents a tax in the market. The per-unit burden of the tax on sellers is $4 and the tax results in a loss of $72 in producer surplus. $8 and the tax results in a loss of $24 in producer surplus. $8 and the tax results in a loss of $72 in producer surplus. $4 and the tax results in a loss of $24 in producer surplus. PRICE
Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and ST is the supply curve after the tax. (b) Calculate the consumer surplus before the tax. Price Answer: 18 12 10 10 12 Qua For the market for cigarettes with the tax. Indicate: Price received by producers the tax Quantity of cigarettes sold Price paid by consumers Price paid by consumers the tax Price received by producers Quantity of cigarettes sold S PhotoGrid