Refer to the figure below for parts a and b. Instructions: Round your answers to two decimal places. See Graph a. Illustrate the consumer surplus generated if the market is in equilibrium. Consumer surplus is $ ______thousand. b. Illustrate the producer surplus generated if the market is in equilibrium. Producer surplus is $_____ thousand. c. What is the total economic surplus? Total economic surplus is $ _____thousand.
Refer to the figure below for parts a and b.
Instructions: Round your answers to two decimal places.
See Graph
a. Illustrate the
Consumer surplus is $ ______thousand.
b. Illustrate the
Producer surplus is $_____ thousand.
c. What is the total economic surplus?
Total economic surplus is $ _____thousand.
Suppose a tax is levied in the market for soda. Consider a $0.50 excise tax on producers for each soda sold. The graph illustrates the
SEE GRAPH
d. What is the consumer surplus generated after the imposition of the tax? Shade in this area on the graph.
Instructions: Use the tool provided “CStax” to illustrate this area on the graph.
Consumer surplus after the imposition of the tax is $ _____ thousand.
e. What is the producer surplus generated after the imposition of the tax? Shade in this area on the graph.
Instructions: Use the tool provided “PStax” to illustrate this area on the graph.
Producer surplus after the imposition of the tax is $ _____ thousand.
f. What is the total revenue generated from the tax? Shade in this area on the graph.
Instructions: Use the tool provided “TR” to illustrate this area on the graph.
Tax revenue from the tax after the imposition of the tax is $_____ thousand.
g. What is the total economic surplus generated after the imposition of the tax?
Total economic surplus after the imposition of the tax is $ _____ thousand.
h. What is the
Instructions: Use the tool provided “DWL” to illustrate this area on the graph.
The deadweight loss after the imposition of the tax is $_____ thousand.
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