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Taxes reduce the
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- 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 _____________.Is it true that “supporters of import restrictions favor producer welfare than consumer welfare”? Why or why not?Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- 2. Consider a market where the domestic supply and the domestic demand are given by Q(P) = 100P and QP (P)=2000-100P. Assume that the economy is open and that the world supply and the world demand is perfectly elastic at price P = 5. (a) Find the equilibrium price and the quantity traded. Is the country a net exporter or importer? What are the consumer surplus, producer surplus, aggregate surplus, and gains from the trade? (b) Suppose the government wants to reduce the imports to 500 units by using tariffs. How should the government set the tariff to achieve this? Find the deadweight loss from the tariff. (c) Suppose there is a technological change in the domestic firms so that the domestic supply is now given by QS (P) = 400P while everything else re- mains the same. Find the new equilibrium price and the quantity traded. Is the country a net exporter or importer? What are the consumer surplus, producer surplus, aggregate surplus, and gains from the trade?"Tax Freedom Day" represents how long the average person works to pay her or his taxes each year. True or FalseQuestion 2: Suppose Qd= 100- 10P Qs = 10P a. Draw a graph using the supply and demand equation assuming no trade. Calculateequilibrium P, Q, consumer, producer and total surplus. b. Draw another graph assuming that trade is allowed. Calculate quantity domesticallyconsumed, domestically produced, imports, consumer surplus, producer surplus assumingworld price =$3. c. What happens to consumer surplus and producer surplus after trade? Does total surplusincrease or decrease after trade? Show your calculations. i need the the diagram
- In Agricultural Trade Agreements, three categories of distortionary policies exist, called Market access restrictions, Domestic support and Export subsidies. Discuss each of these categories using suitable examplesNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.The U.S. subsidizes domestic farmers to ensure that they remain profitable and continue to produce agricultural products. Explain the main argument for ensuring domestic production of agriculture products (even though domestic-produced agriculture costs buyers more than foreign-produced agriculture) and not needing to rely 100% on foreign-produced agriculture. Who are the "winners" of the farming subsidies? How do they benefit? Who are the "losers" of the farming subsidies? What does it cost them?
- Question 16 X Suppose the market demand for a good takes the form: Q=100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is producer surplus after the tax? Selected Answer: 1875 Question 17 Suppose the market demand for a good takes the form: Q=100-2P and market supply takes the form: 05= - 50+ 3P Suppose a $5 per unit tax is applied to sellers in the market. What is total surplus after the tax? Selected Answer: 2750 Question 18 Suppose the market demand for a good takes the form: Q=100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is the deadweight loss from the tax? (Hint: calculate directly, using too many rounded values may lead to an inaccurate answer) Selected Answer: 37.5Applications of Supply and Demand Framework I. The short-run market demand and supply curves for good X are as follows: QD = 20 - 4P QS = 7 + 2.5P Questions: 1. Find the equilibrium price and quantity before the imposition of the tax. 2. What is the price actually paid by the demanders (Pd) due to a quantity or specific tax of $1 per unit collected from the buyers? 3. What is the price actually received by the suppliers (Ps) due to a quantity or specific tax of $1 per unit collected from the buyers? 4. What is the after- or post-tax quantity? 5. What is the total revenue after the imposition of the quantity or specific tax? 6. How much of the tax do consumers pay (in percent)? 7. How much of the tax do producers pay (in percent)? - Hi! You can answer only 4-7 items because the 3 first questions have already been answered. Thank you!How deadweight loss occurs when a small country imposed export taxes?
