c. MR and MCd. Q that will give maximum profite. Find the maximum profit4. Given demand function is P = 180 – 8Q and supply function is P = 25 + 20. If thegovernment imposes a per-unit tax "t" on the good sold in this market, what level of "t" willmaximize the government's tax yield?

Demand function:PD=180-8QSupply function:PS=25+2Q

4. Given demand function is P = 180 – 8Q and supply function is P = 25 + 2Q. If the government imposes a per-unit tax "t" on the good sold in this market, what level of "t" will maximize the government's tax yield?

4. Given demand function is P = 180 – 8Q and supply function is P = 25 + 2Q. If the government imposes a per-unit tax "t" on the good sold in this market, what level of "t" will maximize the government's tax yield?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST1: Government Spending And Taxation

Section: Chapter Questions

Problem 3CQ

See similar textbooks

Related questions

Q: Consider the market for ice cream cones. Suppose that supply in this market is given by P^S = Q^S…

A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…

Q: 1. Suppose the demand curve for a good is downward sloping and the supply curve is upward sloping.…

A: We are authorized to answer three subparts at a time, since you have not mentioned which part you…

Q: USe the accompanying graph to answer these questions. b. Suppose demand is D and supply is S^0. If…

A: b. Price floor is the maximum price which government has imposed above which goods are sold in the…

Q: Consider the market for rubber bands. a.If this market has very elastic supply and very inelastic…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: 20 18 16 14 12 Sapply 10 Demand 16 32 48 64 80 96 112 Suppose that a $6 tax is imposed on consumers…

A: Hello. Thank you for the question. Since there are multiple questions posted here, only the first…

Q: xyz has immense demand function p=30-Q and marginal cost of MC=Q . suppose the government introduces…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Suppose that a per-unit tax of 25 centavos per pack is placed on the sale of cigarettes by the…

A: 1. Burden of tax at D1 (Elastic demand): The price and quantity before tax is $1.30 and 5 units…

Q: You have the following information from the market Demand function: QD=280−5P Supply function:…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 +…

A: Demand: P = 24 - 1/2Q Q = 4 + 2P P= Q/2-2 Equilibrium: Q=22 units, P= IDR13 The government provides…

Q: 1. The monthly demand function is p, =31,000,000 --q° and the supply function 3 before taxation is…

A: Inverse Demand: Pd = 31000000 - 1/3q2 Inverse Supply: Ps = 1500000+4500q

Q: Consider the demand and supply for strawberries to be given by Qd%3D10-0.33P and Qs = -6 + P, and…

A: The correct option is option a. The workings are given in the next step.

Q: APPLICATIONS OF SUPPLY AND DEMAND FRAMEWORK:

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Suppose demand is represented by P = 500.5Q, and supply is represented by P = 4 + 1.5Q. If the…

A: Introduction We have given demand and supply function. We have to calculate total surplus before…

Q: A Market is described by the following supply and demand curves: Qs - 2P and Qd = 100 - P.…

A: Market equilibrium prices and quantities are determined by the interaction of the demand curve for a…

Q: Question 2 - 2P and Qs = Suppose the market demand and supply equations for flowers are Qp = 100 3P,…

Q: 1. Suppose the demand for a good is Qd=300-2P, and the supply is Qs=4P. a. Find the new (after-tax)…

Q: Suppose the market demand for milk is Qd = 40 – 4P Where Qd is millions of gallons demanded and P…

A: Deadweight loss is caused due to the inefficiency in the market. It occurs when the equilibrium for…

Q: 4. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720-SP…

A: Burden of tax is the difference between price paid by consumers after tax and price paid by…

Q: 1.Given the following information Qd = 240 – 5p Qs= P Where Qd is the quantity demanded, Qs is…

A: Consumer surplus is the difference between the price a consumer is willing to pay and the actual…

Q: Suppose the equation for the demand curve for some product X is P = 8 − 0.6Q and the supply curve is…

A: Demand curve: Supply curve: At equilibrium, Now, substituting Q=6 in the demand curve, we get,…

Q: Title The supply and demand equations for a good are respectively. The government decides to impose…

A: Given: The supply and demand for an equation are: Qd = 500 - 9pQs = -100 + 6p Tax = t per unit of…

Q: Distinguish between the benefits-received and the ability-topay principles of taxation. Which…

A: The benefits-received theory ensures that governments can supply public goods and services in much…

Q: Suppose that there is a market demand and market supply curve given by P = 10 - 0.1Q and a market…

A: Market demand curveP=10-0.1QD0.1QD=10-PQD=100-10PMarket supply…

Q: Q2: Suppose the demand function is p = 50 - 2q………………1 and the supply function is p = 10 +…

A: Since you have posted multiple parts questions, we will solve the first one for you. If you want any…

Q: 4. Assume that the demand function for a commodity is given by 2. and that the supply function is…

A: Given: Qd = 3-0.1P QS = 1+0.05P Suppose tax of amount t is levied: Supply equation changes and is:…

Q: Assume that the Demand Function is P = 16250 - 6Q and Supply Function is P = 2000 + 3Q, a tax of…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Consider a competitive market with the following supply and demand curve QS = 100/8 P and P = 400…

Q: Given Qd = 10000 - 4p Qs = -400 + p Find consumer surplus, And find producer surplus at equilibrium.…

A: Given Demand equation Qd=10000-4p ... (1) Supply function Qs=-400+p…

Q: Given, the total surplus in the market is 1680 pounds. You know that the consumer surplus in the…

A: The market price is determined at a point where the market demand curve intersect the market supply…

Q: In a market, the demand function is given by the equation Q = 150 - P and the supply function is…

A: Q = 150-P ----------> demand equation Q = -30 + 3P -----> supply equation At equilibrium,…

Q: The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Q…

A: P = 10 – (2/3)Q (Demand Equation) P = 1+(1/3)Q (Supply Equation) To find out the equilibrium…

Q: 2. Consider a market where the supply and the demand are given by Q°P)= 100P and Q®P)=2000– 100P.…

A: In the case of ad valorem taxation, tax is imposed as a given percentage of the price, but in the…

Q: 0 Question 10 In the market for tomatoes, assume the market demand is elastic and the market supply…

A: As we know that market archive equilibrium point where demand is equal to supply . It determines the…

Q: Question: You have the following information from the market Demand function: QD=270-5P Supply…

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

Q: Consider the demand and supply for strawberries to be given by Qd= 10-0.33P and Qs=-6+P and the…

A: ‘Equilibrium’ refers to situation where quantity(Q) demanded equals quantity(Q) supplied. The…

Q: 14.. Which is NOT a constitutional limitation on the power of taxation? a. Application of the same…

A: 14. b. No person shall be imprisoned for non-payment of tax.

Q: In a closed economy, the demand and the supply function for a given commodity are QD =150-2p and QS…

A: The equilibrium is established where the demand and supply forces are equal. The subsidies would be…

Q: f a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the…

A: From the graph, The demand curve passes through (0, 26) and (8,18) and the supply curve passes…

Q: consider the demand and supply for strawberries to be given by Qd=10-0.33P and Qs=-6+P, and the…

A: Market is in equilibrium when demand is equal to supply . 10 - 0.33P = -6 + P, by solving this we…

Question

100%

c. MR and MC
d. Q that will give maximum profit
e. Find the maximum profit
4. Given demand function is P = 180 – 8Q and supply function is P = 25 + 20. If the
government imposes a per-unit tax "t" on the good sold in this market, what level of "t" will
maximize the government's tax yield?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine: A) The consumer surplus after tax B) The producer surplus after tax C) The tax revenue
The market demand for a product is Q = 290 - 7P, and the market supply is Q = -90 + 12P (where Q is quantity and P is price). The elasticity of demand: -.90 The elasticity of supply: 1.20 Suppose the government imposes a $1.20 tax per unit. 1. Use the values for price elasticity of demand and supply to calculate the tax burden on consumers relative to suppliers (or producers). 2. What is the actual tax burden on suppliers? 3. What is the actual tax burden on consumers? 4. Calculate the deadweight loss of the tax, using only the price elasticity of demand and supply, the per-unit tax, and equilibrium price and quantity. Please do fast ASAP fast
Suppose the demand for football tickets is QD=360-10P and the market supply is QS=20P. a) What price would firms receive after the tax is imposed & What share of the tax is borne by the consumers? b) What share of the tax is borne by the sellers? & What can you say about relative elasticities of demand and supply based on your answers in tax is borne by the consumers and tax is borne by the sellers? c) Calculate tax revenue collected by the government from this tax.
Consider a competitive market with the following supply and demand curve QS = 100/8 P and P = 400 -2.92Q. Assume the government imposes a tax on each unit sold, T = 30.What are the equilibrium quantities before and after the tax? Scegli un'alternativa: a. 133 before the tax and 123 after the tax b. 150 before the tax and 113 after the tax c. 133 before the tax and 150 after the tax d. 100 before the tax and 123 after the tax e. 133 before the tax and 133 after the tax
Suppose the demand for cigarettes is Q = 15 - 0.5Pand the supply of cigarettes is Q = P - 3, where P is the price per pack of cigarettes. Suppose the government imposes a cigarette tax of $3 per pack. (a) What is the price paid by producers and price faced by consumers? (b) What is the government revenue from the tax and What is the total dollar amount of tax revenue that is ultimately paid by consumers (i.e. consumers' tax burden)? (c) What is the excess burden of the tax?
Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. A) What is the seller's reservation price? B) What is the consumer's surplus before tax? C) What is the producer's surplus before tax?
You have the following information from the market Demand function: QD=280−5P Supply function: QS=−70+5P 1. What is the willingness to buy? 2. What is the economic cost of the sellers? The government has imposed a tax regulation of 10 takas. Assume that buyers and sellers both share the tax burden equally. 3. What is the consumer surplus after tax? 4. What is the producer surplus after tax? 5. What is the tax revenue?
Tax incidence.Given:Demand (D): P = 100 – 1.5 Q Q* = 40 P*=40Supply (S): P = 20 + 0.5 Qa. Suppose a specific tax of P10 per unit is imposed on producers.i. What is the new supply function?ii. Solve for the new equilibrium quantity and price after the tax is imposed.b. How much will the consumer pay for the good (price)?c. How much will the producer sell for this good (price)?d. What is the amount of total tax revenues?e. Who bears the burden of tax? Why?f. Calculate the elasticity of demand and supply to validate your answer in letter e. Discuss youranswers.
Consider a product that is fixed on supply QS=4 and the demand for the product is givenby QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer.a) What is the price paid by consumer and producers before the tax and after the tax?b) Find the total tax burden, burden on consumers and burden on producers.c) Suppose that supply schedule is changed to QS= 4+P. Redo the above questions and compare the results thanks in advance
Consider a product that is fixed on supply QS=4 and the demand for the product is given by QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer. a) What is the price paid by consumer and producers before the tax and after the tax? b) Find the total tax burden, burden on consumers and burden on producers. c) Suppose that supply schedule is changed to QS= 4+P. Read the above questions and compare the results.
Show that given a linear demand schedule and constant marginal cost, the excise tax will lead to a decrease in the level of output while increasing the price by half of the tax rate.
Consider a market with the following demand and supply curves: Q (p) = 20 – 2P Q (p) = - 10 + 3P (b)Suppose the government imposed a sales tax of $0.80 per unit of output sold, find the price paid by the consumer, the price received by the supplier, the equilibrium quantity transacted, and the total tax revenue received by the government. (c)What do you think is the purpose for such tax policy? In your explanation, include a brief discussion of the importance of price elasticity of demand in the choice of commodities to be taxed in order to achieve specific policy goal(s).