55Price (P)S2 (after tax)S, (before tax)Таxi of$35$30$25$20E90100Quantity (Q)The diagram above shows a market before and after an excise tax has been levied by the government. Assuming the original equilibriumwas socially optimal, the deadweight loss from the tax isSelect one:a. $400b. $50c. $100d. $300

Deadweightloss represents inefficiency of market. It disrupts the market equilibrium where quantity…

Answered: Price (P) S2 (after tax) S, (before…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following will most likely lead to the smallest deadweight loss (all else equal)? Select one: A. A payroll tax of $10 B. A mandated benefit that costs $15 and employees value at $4 C. A payroll tax of $7 D. A subsidy of $13 E. A mandated benefit that costs $9 and employees value at $3 O O O O
Table 2: Market for Skis P 0 4 8 12 16 Qd Qs 15 0 12 9 6 3 20 0 6 12 12 16 20 2. Consider Table 2. a. What is the equilibrium price and quantity? b. What is the CS, PS, and TS? C. If there is a $3 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity?
than high high minimum prices and taxation, what policies could be used to tackle binge drinking? 1. Other other
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Price, P ps subsidy Pe p8 subsidy Subsidy S Per unit subsidy D QE Qsubsidy Look at the figure above where a subsidy has been imposed on the good. What does a subsidy do? ( Does it lead to a deadweight loss?! Why or why not? Show/explain this - you may attach images if it's easier. (3 Quantity, Q
Figure 1. The graph depicts the market for plastic containers. Price 16- 14- 12- 10 8- 6 200 500 650 Social Cost Private Cost Demand Quantity Refer to Figure 1. In order to reach the social optimum, the government could O offer a subsidy of $8 per unit on the production of plastic containers. O impose a tax of $8 per unit on the production of plastic containers. O offer a subsidy of $4 per unit on the production of plastic containers. O impose a tax of $4 per unit on the production of plastic containers.
Using the attached table, the equilibrium price before the tax is imposed is . The equilibrium price after the tax is imposed is a b Question 19 с d Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. $140, $160 $160, $140 $140, $150 Price (S) 100 $160, $150 120 140 160 180 200 220 Quantity Quantity Quantity Demanded Supplied Supplied w/Tax 600 530 575 540 550 550 525 560 570 500 475 450 580 590 495 505 515 525 535 545 555
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8

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Price (P) S2 (after tax) S, (before tax) Тах $35 $30 $25 $20 D 90 100 Quantity (Q) The diagram above shows a market before and after an excise tax has been levied by the governmen was socially optimal, the deadweight loss from the tax is Select one: a. $400 b. $50 c. $100 d. $300