Solve this economic subparts b, c and d. Market Equilibrium and Policy Homework 6SavedMarket for SofasPriceQuantity of SofasDemandedQuantity of SofasSuppliedQuantity of Sofas Demanded with(dollars)$1,2401,1801,1201,0601,000940Excise Tax24029027027012091503002503302302101803602102402703:34:48390190880420170150820450760700480510300330360Book130110AskInstructions: Enter your answers as a whole number.Printa. Before the excise tax is imposed, what are the equilibrium price and quantity of sofas in Akron?erencesP=$1180270 sofasb. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed?c. After the excise tax is imposed, what is the new equilibrium quantity of sofas?210 sofasd. What is the total amount of revenue collected by the government from the excise tax on sofas?%24SrawPrev1 of 10Next >

The quantity supplied and quantity demanded in the economy for a certain type of good or service is…

b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? 210 sofas d. What is the totol amount of revenue collected by the government from the excise tax on sofas?

b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the tax is imposed? c. After the excise tax is imposed, what is the new equilibrium quantity of sofas? 210 sofas d. What is the totol amount of revenue collected by the government from the excise tax on sofas?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.10P

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It's a specialized market, so we'll just have to assume we have enough buyers and sellers to have our demand and supply curves be straight, smooth lines. The following information applies to the market before any tax is applied: Vertical intercept, demand curve: 600Vertical intercept, supply curve: 100P* = $300Q* = 50 Later, a tax is put on the market. The per-unit tax is $100, and it makes the price received by sellers fall to $260. With the tax, only 40 units are sold. (These numbers are not very realistic - but just go with it.) Carefully following all numeric instructions, calculate the price paid by buyers. Calculate market total surplus AFTER the tax is applied. Calculate producer surplus BEFORE the tax is applied. Calculate total market surplus BEFORE the tax is applied. Calculate DWL after the tax is applied.
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please explain to me step by step how to find the equilibrium price i more detail than before, how do you choose which terms to move to the other side of the equation, and why when moved they are positive or negative the answer that i received before, when i substitute the price in de demand and in the supply equation, i dont get the same answer The following represents demand for widgets (a fictional product): QD = -47,214 – 90P + 0.8M - 2PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by QS = 400P – 15,550 Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements. Assume that M = $68,500 and PR = $53. Solve algebraically to determine the equilibrium price and quantity of widgets. Generate a supply/demand graph in Excel. Be sure that P is the vertical axis and Q the horizontal. Does the graphical equilibrium correspond to…
Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust. Calculate:ii) the consumer surplusiii) the producer surplusiv) dead weight loss HINT: Sketch the supply and demand equations. Which of the two options would be preferred by the producers? Which of the two options would be preferred by society as a whole?
Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. Suppose now that the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72. Calculate: i) the consumer Surplusii) the producer surplusiii) deadweight loss HINT: Sketch the supply and demand equations. Which of the two options would be preferred by the producers? Which of the two options would be preferred by society as a whole?
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Suppose that your state raises its sales taxfrom 5 percent to 6 percent. The state revenuecommissioner forecasts a 20 percent increase insales tax revenue. Is this plausible? Explain.
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