Suppose you have the information shown in the table below about the quantity of a good that is supplied and demanded at various prices. Price ($) Qd Qs 50 180 45 10 160 40 20 140 35 30 120 30 40 100 25 50 80 20 60 60 |15 70 40 |10 80 20 90 The supply curve is represented by the equation P = 5 + 0.25Q, and the demand curve by P = %3D 50 - 0.5Q.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose the government imposes a $15 per unit tax on sellers of this good.

 

a) Fill in the table attached and show your work. 

b) After the tax state whether the consumer surplus, producer surplus and total surplus increased, decreased or stayed the same. 

Suppose you have the information shown in the table below about the quantity of a good that
is supplied and demanded at various prices.
Price ($)
Qd
Qs
50
|180
45
|10
160
40
20
|140
35
30
120
30
40
100
25
50
80
20
60
60
15
70
|10
80
20
90
The supply curve is represented by the equation P = 5 + 0.25Q, and the demand curve by P =
%3D
50 - 0.5Q.
40
LO
Transcribed Image Text:Suppose you have the information shown in the table below about the quantity of a good that is supplied and demanded at various prices. Price ($) Qd Qs 50 |180 45 |10 160 40 20 |140 35 30 120 30 40 100 25 50 80 20 60 60 15 70 |10 80 20 90 The supply curve is represented by the equation P = 5 + 0.25Q, and the demand curve by P = %3D 50 - 0.5Q. 40 LO
Equilibrium (Before Tax)
After Tax
Consumer Surplus
$
$
Producer Surplus
|Government Revenue
Total Surplus
$
$
%24
%24
%24
%24
%24
%24
%24
Transcribed Image Text:Equilibrium (Before Tax) After Tax Consumer Surplus $ $ Producer Surplus |Government Revenue Total Surplus $ $ %24 %24 %24 %24 %24 %24 %24
Expert Solution
Step 1

Consumer surplus= 12×(maximum price-actual price)×Quantity

Producer surplus=12×(actual price-minimum price)×Q

Total Surplus= Consumer surplus + Producer surplus

Government Revenue= Quantity×tax 

 

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