7. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 0.037 Q P = 15.7 +0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price paid by the buyer after the imposition of tax? A. P56.59 B. P60.56 C. P730.11 D. P622.58 8. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 0.037 Q P = 15.7 +0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price received by the seller after the imposition of tax? A. P56.59 B. P60.56 C. P50.56 D. P70.56 9. The demand and supply functions for product x are given, respectively, by the equations: P-83.6- 0.037 Q P = 15.7 +0.056 A P10 tax per units is levied to the manufacturer. How much is the tax burden on the part of the seller after the imposition of tax? A. P10 B. P3.97 C. P6.03 D. P5.0 10. The demand and supply functions for product x are given, respectively, by the equations: P=83.6-0.037 Q P=15.7+0.056 ( A P10 tax per units is levied to the manufacturer. How much is the tax burden on the part of the buyer after the imposition of tax? A. P10 B. P3.97 C. P6.03 D. P5.0

7. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 0.037 Q P = 15.7 +0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price paid by the buyer after the imposition of tax? A. P56.59 B. P60.56 C. P730.11 D. P622.58 8. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 0.037 Q P = 15.7 +0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price received by the seller after the imposition of tax? A. P56.59 B. P60.56 C. P50.56 D. P70.56 9. The demand and supply functions for product x are given, respectively, by the equations: P-83.6- 0.037 Q P = 15.7 +0.056 A P10 tax per units is levied to the manufacturer. How much is the tax burden on the part of the seller after the imposition of tax? A. P10 B. P3.97 C. P6.03 D. P5.0 10. The demand and supply functions for product x are given, respectively, by the equations: P=83.6-0.037 Q P=15.7+0.056 ( A P10 tax per units is levied to the manufacturer. How much is the tax burden on the part of the buyer after the imposition of tax? A. P10 B. P3.97 C. P6.03 D. P5.0

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 3TY

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The demand and supply functions for product M are P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax per units is levied to the producer. Question: What is the P received by the seller after the imposition of tax? and how much will be the tax burden on the part of the producer after the imposition of tax? How much will be the tax burden in the part of buyer on the other hand?
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.
If a constant $1 per unit tax is imposed on producers, A. producers can always pass the tax burden to consumers by raising the price by a dollar. B. producers will pay more than $0.5 tax for each unit of the good sold if supply is less elastic than demand. C. producers will pay less than $0.5 tax for each unit of the good sold if demand is more elastic than supply. D. producers must absorb the tax themselves and cannot raise the price.
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Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the producer surplus after tax
The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.
Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the quantity and consumer surplus after tax
Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the buyer's price after tax and seller's price after tax