The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. P P. P₁ E C ST QT Q₂ a

What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?

Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.

Market researches have studied the market for milk,and their estimates for the supply of and the demand for milk per month are as follows:a.Using the data,graph the demand for and the supply for milk.Identify the equilibrium point as E,and use dotted lines to connect E to the equilibrium price onthe price axis and the equilibrium quantity on the quantity axis.b.Suppose the government enacts amilk price support of $8per gallon.Indicate this action on your graph,and explain the effect on the milk market?Why would the government establish such a price support?c.Now assume the government decides to set a price ceiling of $4 dollar per gallon.Show and explain how this legal price effects your graph of the milk market.What objective could the government be trying to achieve by establishing such a price ceiling?

The government decides to impose a price ceiling on a good because it thinks the market-determined price is too high. If it imposes the price ceiling above the equilibrium price: consumers will purchase less of the good after the price ceiling is imposed. neither producers nor consumers will change their behavior. O producers will respond to the higher price and therefore offer fewer units for sale O consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price.

what are the determinants of the produce surplusin a market ?how does it increse depend on the determination ?

The demand and the supply of timber for construction in Australia are given byQD =100 – 20PQS = 5P Suppose there is a strike of loggers, which changes the supply toQS = 4P. Calculate the new equilibrium quantity and use a demand and supply graph to explain howthe strike affects the equilibrium price and quantity. After the strike in 2.6, suppose the government subsidizes the buyers s dollars for every unit theypurchase. Write the price paid by consumers in the equilibrium as a function of s. Would the governmentbe able to use the subsidy to achieve the surplus before the strike,. If no,explain why. If yes, what should be the value of s?

Complete the following

Please no written by hand solution

Total economic surplus is represented by?