The vertical distance between points A and B represents a tax in the market. Price 24 22 20+ 18+ 16 14+ 12 10+ 8 6+ 4 2 Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 Quantity As a result of the tax, consumer surplus decreases by $65, producer surplus decreases by $85, tax revenue is $120, and deadweight loss is $30. $75, producer surplus decreases by $75, tax revenue is $120, and deadweight loss is $30. $80, producer surplus decreases by $80, tax revenue is $120, and deadweight loss is $40. $120, producer surplus decreases by $120, tax revenue is $200, and deadweight loss is $40.

The vertical distance between points A and B represents a tax in the market. Price 24 22 20+ 18+ 16 14+ 12 10+ 8 6+ 4 2 Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 Quantity As a result of the tax, consumer surplus decreases by $65, producer surplus decreases by $85, tax revenue is $120, and deadweight loss is $30. $75, producer surplus decreases by $75, tax revenue is $120, and deadweight loss is $30. $80, producer surplus decreases by $80, tax revenue is $120, and deadweight loss is $40. $120, producer surplus decreases by $120, tax revenue is $200, and deadweight loss is $40.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note: please answer the need 7and,8
Price 110 + 100 + Supply 90 80 70 60 + Demand 50 45 40 30 20 10 + +++ ++ 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Buantity 12. Assume that demand increases (shifts to the right), raising the equilibrium price from $50 to $70. How much does producer surplus increase due to new producers entering the market? a) $400. b) $800. c) $1,200. d) $900.
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Note: Please answer subpart 4, 5 and 6
24 22 20 A 18 16+ 14+ Supply B 12 10- F H 6. 4 K Demand 2+ ++→ 16 4. 10 12 14 One effect of the tax is to reduce consumer surplus by S36. reduce producer surplus by $24. create a deadweight loss of $20. 8. 2.
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Q26
If the government imposes a price ceiling of $55 in this market, then total surplus will be what?
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