A tax of $1 in the market for widgets causes a deadweight loss of $2. If the tax is raised to $3 then deadweight loss will be approximately: A) 18 B) 6 C) none of these answers D) 12
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- The demand and supply functions for a type of good are shown by the equation: Qd = 1500-10P and Qs = 20P-1200.Each item sold is subject to a tax of IDR 15.00 per unit.Define: a. Price and balance before tax.b. Price and balance after tax.c. Draw the two balances on a cross axis.d. Producer 's tax burden .e. Government revenue from taxes on the sale of the goods.Refer to Figure 8-2. The per-unit burden of the tax on sellers is a) $3. b) $9 c)2 d)$8If the federal tax rate is 36% and the state tax rate is 7%, the effective tax rate is closest to: (a) 40.5% (b) 37.3% (c) 35.4% (d ) 31.8%
- 36. Assuming a $7 per unit tax is imposed, the revenue raised by the government will be $______. a) 10 b) 12 c) 14 d) 16 e) 19 f) 28 g) 36 h) 48 i) 66 j) 70 k) 84iven the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward Question Asked Sep 2, 2020 1 views Given the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). iv. graph the results in (i) and (ii). Please I need solution for only iv Thank youRefer to Figure 4-4. The per unit burden of the tax on buyers is a. P2 minus P0. b. P2 minus P1. c. P1 minus P0. d. Q1 minus Q0.
- The market demand and supply functions for a good are: QD = 120 - 6P and QS = 20 + 4P. The equilibrium quantity and price are 60 and €10 respectively. Suppose the government imposes a tax of €2.00 per unit. The price that sellers will receive after the tax isA. €8B. €9C. €10.80D. €8.80QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Producer suprlus after taxBecause of the sales tax in a particular region, a customer in a supermarket must pay $1.46 for a package of candy marked $1.35. What is the effective tax rate on this purchase, expressed as a percentage?
- Suppose that a firm's marginal abatement cost function with existing technologies is MAC = 18 - 2E. If the firm adopts new pollution abatement technologies, then its marginal abatement cost function will become MAC = 9 - E. With an emissions tax of $4, the benefits of adopting the new technologies are $____. THE ANSWER IS NOT 5.The "backstop" approach to carbon tax refers to: (Select one) a. A shared value of carbon tax between the federal and provincial governments b. A minimum standard set by the federal government, which the provinces must meet or exceed c. A revenue neutral tax d. A maximum standard set by the provinces, which the federal government can meet or exceedSuppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the producers is: None of these $84 $18 $63 $21
