Suppose the market for a product is given by the following S+D functions.price1008060402020Demand40 60 80 100 120 140How much DWL does a $10 tax create?O a. zeroOb. 200O c. 600O d. 400Supply

Taxes lower the value of transactions for both buyers and sellers because the buyer has to pay a…

Answered: Suppose the market for a product is…

Suppose the market for a product is given by the following S+D functions. price 100 80 60 40 20 20 6 Denard 00 8 100 120 140 Lepty

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 7PA

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Heip m/ultra/courses/_165411_1/cl/outline lyLab M... W WordCounter 5 Quizlet * Question Completion Status: QUESTION 13 Figure 6-25 1ice 10 Is 6. 4 1 Daftertade 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is O a. $5. O b.$2. Oc. $1. O d. $6. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers tv
O When a per unit tax is imposed on the consumer of the product, identify how the consumer nd producer surplus changes, identify the deadweight loss and the amount of the total tax that vill be received by the government. Price PTax D PE F E P1 I H. K Dmi DMTAX QE QE2 Quantity aibicid eifigoh Consumer Surplus before tax = Producer Surplus before tax Consumer Surplus after tax = a Producer Surplus after tax = dig Total Tax = Deadweight Loss = %3D a,bicifih 7 b.) If the world price level of a product was above the domestic U.S. equilibrium price, diagram if the U.S. would import or export the product? Identify how the consumer surplus and producer
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Figure & The vertical distance between peints A and B represents a tax in the market. Refer to Figure &. The munt of deadweight loss as a result of the tax is O $400 O $250 O $600 O $50. 82882288922 110 PRICE 100 Supply K Demand 610 15 20 25 10 QUANTITY 02
Which of the following is an example of a Tax Deduction? O Clothing Expenses O Child Dependency Expenses O Educational Expenses O Travel Expenses 1 3 4 Next
suppose the canadian governemt. has decided to place an excise tax of $40 per tired on producers of automoblie tires.
Suppose that the demand curve for wheat is Q500 - 10p and that the supply auve is O 10p What are the efects of a subnidy (negative tax) ofs4 per unit paid to produoers on the equlibrium, govemment. subsidy cost, consumer surplus (CS), producer surplus (PS), weifare (W, and deadweight loss (DWL)? Wih the subsidy, the equibrium price is Sand the equilibrium quantity isunits. (Enter your responses as whole numbers) The cost of the subsidy to the govermment is S (Enter your response as a whole number) The change in consumer surplus (ACS) is S (Enter your response as a whole number.) The change in producer surplus (APS) is S Enter your response as a whole number) The change in welttare (AW) is S (Enter your reaponse as a whole number and include a minus sign i necessary Deadweight loss is S (Ender your response as a whole number)
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poin(s) possible Imposing a sales tax on sellers of a product has an effect that is similar to which of the following? cem A. a decrease in people's willingness to work B. an increase in demand for the good C. an increase in the costs of production O D. a decrease in consumers' preferences for the good ue As O E. Anything that decreases the demand and shifts the demand curve leftward. nt Ass ЛAR 1 O Time Remaining: 00:58:48 ompleted (ECON202 $2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e оо
2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Find the equilibrium price and quantity ii. If a tax of GH¢ 10.00 per unit is imposed calculate the equilibrium price and quantity iii. The distribution of tax Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate th profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢ 15 in the market
Suppose a tax of $0.25 is placed on the market depicted below. 090 085 0.80 0.75 0.70 085 060 0.55 050 0.45 0.40 50 100 150 200 250 300 350 400 What is the DWL from the tax? O a. 8.75 O b.15 O C. 10 O d. 12.50
what is market f suppose that if your income is 10000 your tax is 1000 but if your income is 50000 your tax is 4000 such a tax is ANSWR IN DETAIL