A perfectly competitive market has the following demand and supply: QD = 400- 10p Q5 = 40p Suppose the government introduces a $20 tax on each unit sold. The total tax revenue will be 3200 Now let's consider the tax burden. Out of the $20 tax, consumers pay $ 16 v and producers pay $ 4
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- Question 25 A perfectly competitive market has a market demand given by P = 800-2q and market supply given by P= 150+4q. The government applies a tax to be paid by the consumer of $50 per unit. The government will raise tax revenue of_______ dollars.In the free-market equilibrium of a perfectly competitive market, the price of the good is 90 dollars and the elasticity of demand and the elasticity of supply values are respectively Ed* = -6.6 and Es* = 4.1 Suppose the government imposes a per-unit tax equal to 10.4 payable by consumers. Calculate the estimate of the price firms charge consumers in the tax equilibrium using the elasticity values provided above. Then enter that price value below.Consider the perfectly competitive market for an agricultural commodity. The direct market demand curve is Q(P) = 720 − 15P and the direct market supply curve is Q (P) = 15P. The market equilibrium quantity is 360 units at a price of $24. Suppose the government imposes a price floor at P = $36.00 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and producers face under this policy? The new equilibrium quantity is 540 units. Consumers pay $12 and the producers receive $36. Find the: a. Change in consumer surplus and producer surplus. b. Government Expenditure. c. Change in social surplus.
- The market for mandrake root in Sodden is perfectly competitive. Market demad is given by Q = 477 - 3P and market supply is given by Q = 3P. the government is concerned about the high prices and imposes a price ceiling of $7. What is the quntitiy traded in the market with this price ceiling? Enter a number only.The market for Mandrake root in Sodden is perfectly competitive. Market demand is given by Q=294-3P and market supply is given by Q=5P . The government is concerned about high prices and imposes a price ceiling of $19. What is the quantity traded in the market with this price ceiling?Consider the perfectly competitive market for an agricultural commodity. The direct market demand curve is Q(P) = 780 − 15P and the direct market supply curve is Q (P) = 15P. The market equilibrium quantity is 390 units at a price of $26. Suppose the government imposes a price support at P = $39.00 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and producers face under this policy? The new quantity demanded is 195 units and the quantity supplied is 585 units. Find the welfare impact for the following: a. Change in consumer surplus and producer surplus. b. Government Expenditure. c. Change in social surplus.
- Consider the perfectly competitive market for gasoline. The aggregate demand forgasoline is D (p) = 100 - p. Given the choke price is 100, if the equilibrium price is P25 and the equilibrium quantity is 75 units, what is the consumer surplus?Which of the following is true when there is a tax imposed in a market with perfectlyinelastic supply? Assume that the amount of the tax is less than the price before the tax isimplemented.(a) Buyers pay all of the tax(b) Buyers pay some but not all of the tax(c) Price paid by consumers falls by the amount of the tax(d) Price paid by consumers does not change(e) None of the aboveQ3. Suppose a perfectly competitive market is in a long run equilibrium at a price of $5. At that equilibrium, own price elasticity of demand is 0.6 and own price elasticity of supply is 1. The government then introduces a $6 tax in this market. Which of the following COULD be the new SR and LR demand (buyer) and supply (seller) prices? a) SR: PD = $9 & PS = $3. LR: PD = $11 & PS = $5. b) SR: PD = $7 & PS = $1. LR: PD = $11 & PS = $5. c) SR: PD = $9 & PS = $3. LR: PD = $10 & PS = $4. d) More than one of the above COULD be the new SR and LR prices.
- Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. Suppose the Council puts a tax of $5 per unit on the purchase of pickles. Write an equation showing the relationship between the price paid by consumers and the price received by producers.In a perfectly competitive market, the market demand curve isQd=10-pd, and the market supply curve is Qs=1.5Ps . What is the equilibrium price and quantity in the absence of government intervention?The wheat market is perfectly competitive and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000PQS = 7,000,000 + 2,500,000P,where QD and QS are quantity demanded and quantity supplied measured in kilogram (kg), and P = price per kg. question: a) Assume that the government has imposed a price floor at $2.25 per kg and agrees to buy any resulting excess supply.How many quantity (kg) of wheat will the government be forced to buy?Determine consumer surplus with the price floor.
