1. In the market for beer, Qd = 100 - P Qs = 3P The government decides to levy a $3 tax on suppliers. b) What is the equation of the supply curve with the tax?
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1. In the market for beer,
Qd = 100 - P
Qs = 3P
The government decides to levy a $3 tax on suppliers.
b) What is the equation of the supply curve with the tax?
Please explain + show steps, I don't understand.
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- What is total surplus? How is it illustrated on a demand and supply diagram?Question 8 You are the manager of medium-sized company that deals in production of make-ups in Ghana. Suppose one morning you heard on the news that the government has imposed a lump sum tax on every unit of make-up sold in the market. a) Using demand and supply analysis, illustrate the effect of the lump sum tax imposed on the make-up market by showing whether there will be a shortage or surplus of make-ups in the market. b) How would you expect the equilibrium price and quantity of make-up to change in the market? c) Suppose during the same period the price of a leading substitute product decreases along with the change the effect of the tax mentioned above, how would you expect the equilibrium price and quantity of make-up to change? Note: Draw a graph to explain your answers.consider the details of good X given and answer the questions below. Use illustrations If the government imposed a tax of Rs.3/- on every unit that is being supplied find the new equilibrium price and quantity, how is tax shared between consumers and suppliers Price Quantity Demanded Quantity supplied 12 120 20 20 40 140
- ppose the market condition for good X is characterized by an inelastic supply curve and a perfectly-elastic demand curve. Which of the following is true? It may help to draw the diagram first and then attempt the question. A- Consumer surplus is0 B-Producer surplus is higher than consumer surplus C-Consumer surplus is 0 Producer surplus and consumer surplus are equal D-Not enough information givenSuppose the demand and supply curves are described byMC = 1.11 + 0.89QWTP = 8.92 - 0.83QSuppose the price is 6.37.A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.Question 8888 The alternative policy is to introduce a tax of $3,000 on the sale of newcars. Under this policy, determine the price paid by consumers, the price received byfirms, and the number of new cars sold. Finally, determine what share of the tax ispaid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax. Full explain this question and text typing work only thanks
- Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity supplied = 2p-4. What would be the price paid by consumers if there was a 6 dollar tax on tea?The demand function is Q=10-0.67P. The supply function is Q=0.33P. a) Graph these functions (remember you need to find inverse demand and inverse supply to graph ). b)What is equilibrium price and quantity? c)If you impose a price floor of $12, what is the surplus/shortage? Show work. d)If you impose a price ceiling of $3, what is the surplus/shortage? Show work.1. Give an example of a market (it can be of any good or service). 2. Determine a scenario where the demand curve would shift (either increase or decrease). 3. Determine a scenario where the supply curve would shift (either increase or decrease). 4. How would equilibrium price and equilibrium quantity be affected by the shifts in part 2 and part 3? 5. Draw the graphs separately for part 2 and part 3.
- Suppose an excise tax (per unit tax) is imposed on the sellers of cigarettes. What is the effect on equilibrium price and quantity? Are sellers receiving a higher price compared to before?analysis of the video poker market in Rye shows demand by the patrons is Qd=200-2P and the supply is Qs=2P now suppose that the city of Rye passes a law that requires all video poker arcades to contribute m cents to a city charitable fund for each game played on there machines, this is essentially a excise tax. In a diagram show the effect of the new law on the market ( Do not try to give a algebraic solution, just show what happens graphically and describe. Please illustrate how the tax of m shifts the specific curves. In the approach of modeling taxes and subsidies. The direction of the shift carries a specific meaning in economics. graphically indicate the incidence of taxation on consumers as well as arcade owners. Explain what incidence of taxation is and what the graph tells you the jncidence of this case.The government is interested in imposing a tax on the local gasoline market. Using a tax modified demand, indicate in an appropriate diagram the effect of this tax on this market, labeling everything. Explain what happens to demand, supply, equilibrium price and equilibrium quantity exchanged and why. please give me correct answer with proper explanation and diagram
