The data for five-kilo boxes of lobsters are given in the table below. Quantity Supplied (before tax) Quantity Supplied (after tax) Price $90 100 110 120 130 140 Quantity Demanded 890 880 870 860 850 840 a) Before the tax, what are the equilibrium price and quantity? Price: $ Quantity: b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the product. Price: 850 860 870 880 890 900 c) What are the new equilibrium price and quantity? Quantity:

The data for five-kilo boxes of lobsters are given in the table below. Quantity Supplied (before tax) Quantity Supplied (after tax) Price $90 100 110 120 130 140 Quantity Demanded 890 880 870 860 850 840 a) Before the tax, what are the equilibrium price and quantity? Price: $ Quantity: b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the product. Price: 850 860 870 880 890 900 c) What are the new equilibrium price and quantity? Quantity:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

-Class Activity
nces
The data for five-kilo boxes of lobsters are given in the table below.
Quantity Supplied
(before tax)
Quantity Supplied
(after tax)
Price
$90
100
110
120
130
140
Quantity
Demanded
890
880
870
860
850
840
Price:
850
860
870
880
890
900
c) What are the new equilibrium price and quantity?
a) Before the tax, what are the equilibrium price and quantity?
Price: $
Quantity:
b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per-unit excise tax is put on the
product.
Saved
Quantity:
d) What portion of the $20-per-unit excise tax is paid by the seller, and what portion is paid by the consumer?
Paid by seller:
%: Paid by consumer:
%
%252Fnewcon

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