What is the producer surplus after the government levies the $20 sales tax on each yellow bell pepper? Enter the dollar value in the blank below.Repeating the table for convenience:Table 1: TablePrice Q. Demanded Q. Supplied$ 200102030405060708090100110120$25$ 30$35$40$45$ 50$ 55$ 60$65$ 70$75$801201101009080706050403020100

Sales tax is a tax that is imposed by the government on the sale of goods and services. It is…

Answered: What is the producer surplus after the…

What is the producer surplus after the government levies the $20 sales tax on each yellow bell pepper? Enter the dollar value in the blank below. Repeating the table for convenience:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose Charles is the only seller in the market for bottled water and Yakov is the only buyer. The…

A: demand refers to the quantity that a consumer wishes to buy at a given price in given period of…

Q: Questions for Chapter 7 Following figure shows the demand and supply curves in Olive Oil market ↑…

A: We have given the demand and supply graph. The demand curve passes through the points (0,20) and…

Q: Given: (x is number of items) Demand function: d(x) Supply function: s(x) = 4√x Find the equilibrium…

A: The demand and supply forces in the market determine the equilibrium in the market. The intersection…

Q: A. The demand curve for a product is D = -2p + 800 , where the demand is units , and p is the price…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The diagram shows the market for a good with an initial equilibrium price of $10. The demand for the…

A: Given; Initial equilibrium price= $10 Initial equilibrium quantity= 100 After demand curve shifts…

Q: DRAW THE ECONOMIC SURPLUS CURVE AND EXPLAIN

A: DRAW THE ECONOMIC SURPLUS CURVE AND EXPLAIN Definitions- Producer Surplus Producer surplus is…

Q: Suppose the market price of sunflower changed to 5 (P = 5) from the market equilibrium (Question…

A: Given demand and supply functions, P= 5

Q: Suppose that prices rise from point A to point B. What is the change in consumer surplus due to…

A: Diagrammatically consumer surplus is given by the formula - CS = 1/2 × base × height

Q: 2. a) The daily market for cups of tea at Suzan Espresso Coffee House is given by the following…

A: Consumer surplus(CS) is the difference between the maximum-willingness to pay and the actual…

Q: Calculate the effect of a subsidy on the equilibrium price and quantity.

A: The subsidy is a payment by the government to producers for each unit produced. It encourages…

Q: Use the following graph to answer the question: how much is producer surplus? What is the total…

A: Producer surplus is defined as the difference between the price which producers are willing to…

Q: Table 1 P 20 14 8 Qs 852 8 5 2 Qd 0 1 2

A: To calculate the producer surplus, we need to first find the market equilibrium price by looking at…

Q: Total economic surplus is represented by?

A: Generally the term surplus means, something that is excess in amount or more than that we need.

Q: The graph shows the supply curve of smart watches and the market price of a smart watch. Draw the…

A: The problem is to identify the producer surplus in the given graph, which shows the supply curve of…

Q: Consider a simple Keynesian income-spending model of an economy described by the following equations…

A: In a Keynesian income-spending model, the equilibrium is determined where: Aggregate Expenditure=…

Q: If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?

Q: None

A: Step 1: Calculate Consumer SurplusConsumer Surplus = (1/2) x (Base) x (Height)Base: Equilibrium…

Q: Price 22 20 18+ 16+ 14 12 10+ 8-1 6 4 2 0 10 20 30 40 50 60 70 80 90 100 Quantity Consider the…

A: Total Surplus refers to the addition of consumer and producer surplus.

Q: Suppose that you are the vice president of operations of a manufacturing firm that sells an…

A: At equilibrium, quantity supply matches with its demand.

Q: On the following graph, use the rectangles once again to shade the areas representing producer…

A: Producer surplus is the difference between the market price and the minimum price a producer is…

Q: The demand and supply curves for the pizza market are shown in the graph below. Calculate the daily…

A: The following is a summarized response; however, for a more thorough explanation, refer to the next…

Q: Calculate the economic surplus in the market represented by the graph.

A: Economic surplus is the total of consumer surplus and producer surplus. So, in this question we’ll…

Q: Calculate the surplus caused by the price floor.

A: A price floor is the government-imposed minimum price set for a product. A price floor is binding…

Q: Economic surplus at 8 million hours: $ b. Now, suppose that the actual quantity of childcare hours…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: Last year the average price for an airline ticket was $400, but the average price dropped to $350…

A: Producer surplus is an economic concept that represents the difference between the price at which…

Q: The diagram shows a subsidy on wheat production given by the Canadian government to wheat producers.…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Answer the following questions based on the graph that represents Kyle's demand for ribs per week at…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Use the following supply and demand equations. Supply:p= 4 + 3q. Demand:p= 2,132-q.

A: Market equilibrium is the situation where market demand is equals to market supply , here in this…

Q: PRICE [Dolars per laptop) The following diagram shows supply and demand in the market for laptops.…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: This question tests your understanding of Application 1 in this chapter: New Zealand's tax on light…

A: The equimarginal rule states that consumers will allocate their income so that the marginal utility…

Q: at is the new consumer surplus?

A: A consumer's surplus is defined as the difference between the maximum price that a consumer is…

Q: In the market for lattes, researchers have estimated the following demand and supply curves. Demand:…

A: Demand: P=42-0.5Q Qd=2(42-P) Supply: P=0.06Q Qs=100/6P Initial Equilibrium; Demand= Supply Qd=Qs…

Q: If you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is…

A: you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is your…

Q: Calculate producer surplus based on a graphor table.

A: The producer surplus is the difference between the actual price received by the producer from the…

Q: What would be the producer surplus and the deadweight loss?

A: Producer surplus is the excess market price at which producers sell the quantity of a commodity over…

Q: Use Rajiv's supply schedule and Kevin's demand schedule to find the quantity supplied and quantity…

A: Please find the answer below. QUANTITY DEMANDED: Quantity demanded is a term used in economics to…

Q: ve some examples of products that are likely to have little if any producer surplus and explain why.

A: The motivation for an entrepreneur to invest their time, money, and energy in a commercial endeavour…

Q: Table 1: Market for Skis Qs P 0 20 40 60 80 Qd 25 20 15 10 5 100 0 0 0 4 8 12 16 20

A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

Q: If producers are willing to sell 20 cans of soda at a total price of 10 and a local restaurant…

A: Given information: Producers are willing to sell 20 cans of soda at a total price of 10, and a local…

Q: Explain the Differentiation between market surplus and shortage?

A: Market surplus when in the market demand of a good is less than the supply of the good. In the…

Q: Consider a market in equilibrium. Suppose supplyin this market increases. How will this affect…

A: Consumer surplus is computed as the difference between the maximum price that a potential consumer…

Question

What is the producer surplus after the government levies the $20 sales tax on each yellow bell pepper? Enter the dollar value in the blank below.
Repeating the table for convenience:
Table 1: Table
Price Q. Demanded Q. Supplied
$ 20
0
10
20
30
40
50
60
70
80
90
100
110
120
$25
$ 30
$35
$40
$45
$ 50
$ 55
$ 60
$65
$ 70
$75
$80
120
110
100
90
80
70
60
50
40
30
20
10
0

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce the concept of sales tax.

VIEW

Step 2: Determine the producer surplus after the tax has been levied.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose that the price of materials used to produce computer hardware, such as graphics cards, is decreased. Show what occurs to price, quantity, consumer surplus, producer surplus, and total surplus in the market for computers graphic cards using a supply-and-demand diagram (draw a graph). Furthermore, provide five explanations for what occurred.
Question 29 Describe where producer surplus is on the graph (use words or you can also draw and attach a drawing or photo of a drawing).
Don't use pen or paper Suppose market demand and supply are characterized by the following equations: p = 12 - 0.4 Qd p = 2 + 0.4 Qs When the market clears, what is the economic surplus? (Round your answer to one decimal place.)
The following diagram represents the market for paperback books. Which area represents producer surplus? Price per book 30 (dollars) с B O A A X 15 15 None of the above. 30 Thousands of books per week
Graphically, producer surplus is the area from the market price ($120) down to the supply curve and over to the equilibrium quantity of 120.
In a perfectly competitive market for cheese with downward sloping demand and upward sloping supply, the equilibrium price is $12 per kilo. If the government imposes a price ceiling of $10, we can conclude that the government policy will: Select one: a. reduce the number of units sold only if demand is elastic b. decrease producer surplus and decrease total surplus c. reduce the number of units sold only if demand is inelastic d. decrease producer surplus but increase total surplus e. increase producer surplus but decrease total surplus
© Macmillan Learning b. How much does this new technology increase consumer surplus? Increase in consumer surplus: $ 1050 Increase in producer surplus: $ Incorrect c. How much does this new technology increase producer surplus? 1050 Incorrect d. How much does this new technology increase total (or social) surplus?
For cach of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount. Roy is willing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for the sports drink without noticing that the price has increased to $2.75 until he counts the change he gets back. Roy has a Roy's surplus: $ producer surplus. consumer surplus.
Suppose the government put into place a program where steel makers were given a subsidy based on the weight of nails produced. What would you expect to happen to the size and quantity of nails produced? Why? (Think about what the incentive is here.)
Producer surplus is the difference between the?
Hello!Could you please help me in solving this question
Question 4. The graph given below is for the market for a water cooler. 120 110 100 90 80 PRICE 50 40 30 20 10 E Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Based on the graph given, calculate the following: (Make sure to show all the steps) a. If the market is at equilibrium, what will be the consumer surplus, producer surplus, and total surplus b. Changes in the producer surplus when the price decreases to $40 per unit. c. Also explain the reasons for those changes (such as if any producers entered or left the market, existing producers' gain or loss). Please calculate the dollar amount of any gain/loss.