Table 1: Market for Skis Qd Qs 0 P 0 20 40 60 80 100 25 20 15 10 5 0 4 8 12 16 20 1. Consider Table 1. a. What is the equilibrium price and quantity? b. What is the CS, PS, and TS? C. If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity? d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include graph! e. Does welfare go up or down? Explain.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Table 1: Market for Skis
P
O
20
40
60
80
100
Qd Qs
25
20
15
10
5
0
0
4
a.
b.
C.
8
12
16
20
1. Consider Table 1.
What is the equilibrium price and quantity?
What is the CS, PS, and TS?
If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive,
and the quantity?
d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include
graph!
e. Does welfare go up or down? Explain.
Transcribed Image Text:Table 1: Market for Skis P O 20 40 60 80 100 Qd Qs 25 20 15 10 5 0 0 4 a. b. C. 8 12 16 20 1. Consider Table 1. What is the equilibrium price and quantity? What is the CS, PS, and TS? If there is a $20 tax, what is the equilibrium price buyers pay, the price sellers receive, and the quantity? d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include graph! e. Does welfare go up or down? Explain.
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Follow-up Question
d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include
graph!
e. Does welfare go up or down? Explain.
Transcribed Image Text:d. If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss? Include graph! e. Does welfare go up or down? Explain.
Table 1: Market for Skis
P
0
20
40
60
80
Qd
25
20
15
10
Qs
0
5
4
8
16
100 0 20
12
Transcribed Image Text:Table 1: Market for Skis P 0 20 40 60 80 Qd 25 20 15 10 Qs 0 5 4 8 16 100 0 20 12
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