Question 5Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. Dis the demand curve before tax, S is the supply curve before tax and ST is the supply curve after the tax.Price1210 -Qua(a) For the market for cioarettes without the tax, Indicate:(0)Price paid by consumersPrice paid by producersQuantity of cigarettes soldBuyer's reservation priceSellers reservation price

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Answered: Question 5 Suppose that the government…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price (dollars per bushel) 5 4 3. 2. 2 3 4 5 6 Quantity (millions of bushels per year) At harvest time the supply of wheat is perfectly inelastic. If the government taxes wheat at $1 a bushel, then A) the buyer pays the entire tax. B) the seller and the buyer split the tax evenly. C) the seller and the buyer split the tax but the seller pays more. D) the seller pays the entire tax.
Look at chart in first picture and answer what is in second picture
3. The market supply and demand for a product are shown in the diagram below. $10 $6 Supply Demand 80 200 QUANTITY (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain. (b) Calculate consumer surplus at the equilibrium price. Show your work. (c) Now suppose the govermment imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to the government? Explain. (ii) Will producer surplus increase, decrease, or stay the same? (iii) Will total surplus increase, decrease, or stay the same? Explain. PRICE
Name: Discussion day/time: Discussion Problems Week 5 Efficiency of Markets Econ 20A Introduction to Microeconomics Prof. Branch Your economic consulting firm has been hired by the Mayor of Las Vegas to provide economic analysis of the consequences of sales taxes on hotel rooms. Background: guided discussion You begin your presentation to the Mayor with some background on the efficiency of the market for hotel rooms in Las Vegas. You estimate that the supply and demand for hotel rooms are described by the following equations: Supply : Q* Demand : Qd 4P – 80 100 – 2P (a.) Graph the supply curve and the demand curve. What is the equilibrium price and quantity? (b.) Calculate (and label in the graph) consumer surplus, producer surplus, and total surplus at the equi- librium. (c.) If the Mayor decided to ban all hotel rooms in Las Vegas, who wold bear the larger burden – the buyers or sellers of broccoli? 1
img' (a If po increases, what happens to the demand and supply of public transportation (shifts left/shifts right/doesn’t change) What happens to the equilibrium quantity and price for public transportation? (increase/decrease) (b)At a given price p, as oil becomes more expensive (po increases), does the (own) price elasticity of demand for public transportation increase / decrease / stay the same? (c) Calculate the cross-price elasticity of public transportation demand with respect to the oil price po, at the point p = 1 and po = 2. Are the two goods (public transportation and oil) substitutes or complements, or unrelated?
Table 5-1 Main Content Quantity 6 8 10 12 Refer to the table. What is the price elasticity of demand when price falls from to $3 to $2? 1.8 1.0 0.6 Price $4 $3 $2 $1 0.63
Please answer c,d,f please answer fast I will rate for you sure....
(35) Consumers who gain the highest marginal benefit from a good supplied by a perfectly price-discriminating producer will pay the least pay the most pay the same as the good's other consumers be unable to purchase the good consume all the available units of the good
1. Create a price ceiling that makes it against the law for landlords to charge more than $1000 per month. 2. Give low-income renters a voucher of $300 that can be used to help pay for housing costs each month. Organize the items according to which idea they are associated with. Associated with the price ceiling Associated with the voucher Answer Bank pushes down housing costs for people who are well-off and рor alike increase the amount of available housing relies upon funding from the government reduce landlords' incentive to spend money on maintenance can be targeted to help specific subsets of the population results in firms having a reduced incentive to build new housing
Price (dollars per pie) 6. 54 4. 4 5 6. Quantity (thousands of pies per week) The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then A) the buyer pays the entire tax. B) the seller pays the entire tax. C) the seller and the buyer split the tax but the seller pays more. who pays the tax depends on whether D) the government imposes the tax on pie buyers or on pie sellers. 2.
(A) Given the following data on individual supply and demand, calculate the market supply and demand. (B) what is the equilibrium price? (C) supposed the current price is $4, at this price, how much of a shortage or surplus exists in gallons?
The U.S. government provides subsidies for a variety of agricultural products. Suppose the demand for and supply of corn is as indicated in the accompanying graph. (is on the picture) a. In the absence of government involvement in the market, the equilibrium price is _______________ per bushel, and the equilibrium quantity is ________billion bushels. (completed) b. Suppose the government provides a $2 per unit subsidy for suppliers of corn. In the graph, shift one or both curves to show the effect of the subsidy. (graph) c. As a result of the subsidy, consumers will pay___________ per bushel, and sellers will receive ________ per bushel. (completed)

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