Question: You have the following information from the market Demand function: QD=270-5P Supply function: QS=-70+5P Submit answers in two decimal places if you get answers in decimals/fractions 1.What is the economic cost of the sellers? 2.Government has imposed a tax regulation of 5 taka. Assume that buyers and sellers both share the tax burden equally. 3.What is the consumer surplus after tax? 4.What is the producer surplus after tax?

Question: You have the following information from the market Demand function: QD=270-5P Supply function: QS=-70+5P Submit answers in two decimal places if you get answers in decimals/fractions 1.What is the economic cost of the sellers? 2.Government has imposed a tax regulation of 5 taka. Assume that buyers and sellers both share the tax burden equally. 3.What is the consumer surplus after tax? 4.What is the producer surplus after tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 2: Imposing a single-stage tax Assume that there are 1000 importers and manufacturers, 2,000 wholesalers, and 10,000 retailers. Each manufacturer (importer) has sales of $30,000,000 which is sold equally across wholesalers, and wholesalers put a 20% markup on the price before selling to retailers Then the goods are resold equally to 10,000 retailers and the retailers impose a 25% markup on it. Suppose the government needs to raise 4.5 billion with a single- stage sales tax, a. What would be the rate of tax the government needs to impose on the sales of importers and manufacturers to achieve the revenue target. b. What would be the rate of tax the government needs to impose on the sales of wholesalers to achieve the revenue target?
Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 D 40 60 Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all work. а. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what that value is? C. How much is the consumer surplus before the tax? d. How much is producer surplus before the tax? е. How much is the consumer surplus after the tax? f. How much is producer surplus after the tax? g. How much is the deadweight loss as a result of the tax
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What is the buyers’ share of the burden of the tax _______?
Question 4 24 22 20 18 Supply 16 14 12 10 4 Demand 369 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 $48 in producer surplus. $4 and the tax results in a loss of $16 in producer surplus. $8 and the tax results in a loss of $16 in producer surplus.
QUESTION 5 Consider the following demand and supply curves Demand: P = 50+i-70, Supply: P=wages + 30 Where i is income and wis wages If the government places a 10-dollar tax on producers, what would be the resulting consumer surplus?
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? 200 I0 120 00 PO GO 20 Qtr 140 IGO I O % tax: burden on consumer burden on producer tax revenue Unit tax: burden on con burden on producer sumer tax revenue Which tax as a consumer do you prefer?
7.7 pleaase explain
Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose the government decides to impose tax of $12 per unit on sellers in the market. Determine: Consumer surplus after tax _____________.
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