2 3025201510demandsupply with taxAddnsgraph about dead weight loss.caused by a tax.docxLook at the attached graph. What is the equilibrium price without the tax?QUESTION 2graph about dead weight loss caused by a tax docxLook at the attached graph. What is the equilibrium price with the tax?QUESTION 3graph about dead weight loss caused by a tax docxLook at the graph in the attached file. What is the deadweight loss caused by the tax?in

The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Answered: 30 25 20 15 10 4. supply demand upply…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 7PA

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Question The supply of candy is given by Qs = 20,000P where Qs is bags of candy supplied per year and P is the price per bag. The demand for candy is given by Qd = 150,000 – 30,000P a. Assuming that candy is sold in a competitive market, what is the equilibrium price and quantity? b. To discourage the consumption of candy, the government levies a tax on consumers in the amount of $1 per bag. What is the new equilibrium quantity? c. What is the impact of the tax on welfare in this market?
The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 64.00 48.00 32.00 Demand A B D F 20 C E 40, 48 40 Supply QUANTITY (Blinkies) ?
Given the following information (iv) Impact on Quantity? QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. What is the Equilibrium price before tax?
When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes. When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes. Since the price-demand and supply-demand equations are linear; Calculate the producer and consumer annuity and find and interpret the market equilibrium point after-tax if the consumer is taxed at a rate of 0,75 TL per product.
The demand for a commodity is given by QD=200-P, and the supply by QS=50+P. What is the equilibrium price and quantity? If a tax of $10 per unit is imposed, what will be the price and quantity after the tax?
The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz determineThe equilibrium prices and quantities of all three goods are? The government decides to: Impose a 25% Tax on X? Impose a 5 Rs /unit Tax on Y? Give a 10% subsidy on good z? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Also calculate changes in consumer and producer surpluses, and amount of revenue earned by the government? Repeat this exercise when policies (a, b), (b, c) and (a, b, c) are jointly implemented. Which policy choice is best? Why? Provide theoretical justification (using diagrams) of all results obtained?
Please help me to ensuere that my answers are correct. Complete all of the blanks. What is the pre-tax equilibrium price Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60 ? Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic): Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) The consumer surplus after taxes is The total surplus after taxes is 3 : The total tax revenue is The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? ]By what amount if any? [ The government decides to impose a price floor at $20. After their action, what is the market price? If there is a shortage or surplus, how much is it? (0 if there isn't one) They then repeal the price floor and create a price ceiling at $40. What is the market price…
Given the following information (iv) Impact on Quantity? QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. What is the Equilibrium quantity before tax?
Assume the market for good Y is in equilibrium. (a) Draw a correctly labeled demand and supply graph for good Y. Label the equilibrium price PePe and the equilibrium quantity QeQe. (b) Assume the government imposes a per-unit tax on good Y. On your graph in part (a), show each of the following after the tax has been implemented. (i) The equilibrium price labeled PNPN and the equilibrium quantity labeled QNQN (ii) The area representing the change in consumer surplus, shaded completely (c) Will the price paid by consumers increase by the same amount as the tax? Explain. (d) Will the loss in consumer and producer surplus be greater than, less than, or equal to the tax revenue collected by the government? Explain.
Suppose that a market is described by the following supply and demand equations:Qs=2PQD=300-Pa.Solve for the equilibrium price and the equilibrium quantity.b.Solve that a tax of T is placed on buyers,so the new denad equation is QD=300-(P+T).Solve for the new equilibrium.What happens to the price receive by sellers,the price paid by buyers.and the quantity sold?c.Tax revenue is TxQ.Use your answer from part(b)to solve for tax revenue as a function of T.Graph this relationship for T between 0 and 300.d.The dead weight loss of a tax is the area of a triangle between supply and demand curves.Recalling that the area of the triangle is 1/2xbasexheight,solve for the dead weight loss as afunction of T.Graph this relationship for T between 0 and 300.e.The government now levies a tax of $200per unit on this good.Is this a good policy?Why or why not?Can you propose a better policy?
Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to $1 per liter is levied on soft drink sellers, please answer the following questions: a. The new equilibrium quantity of soft drinks bought and sold would be ___________ million liters. b. The new equilibrium price paid by buyers of soft drinks would be $__________ per liter. c. The new equilibrium price received by sellers (after-tax) would be $__________ per liter.
Suppose the demand for football tickets is QD=360-10P and the market supply is QS=20P. a) Calculate the deadweight loss of the tax. b) Explain what your answer in part a means, i.e. what does the number mean? c) Draw a neat diagram and show initial equilibrium, after-tax equilibrium, tax revenue and deadweight loss from tax.

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