Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________.
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Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________.
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- a, b, and c of this have already been solved (see attached). Attachment also includes original question. (d) How much is the total surplus of this economy? (e) Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation? (f) Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why?5-1. You currently have an old hardwood cabinet that you want to sell. You can either pick a price and try to sell it at a yard sale or auction it off on eBay. Which method do you think will yield a higher producer surplus? Why?QUESTION 1: TAXATION Suppose that the government of China decided to impose a per unit tax on the suppliers of salt. a) Using a supply and demand model, show and explain the impact that the per-unit tax had on the equilibrium price and quantity of salt. b) Using the diagram created for your answer to (a), show and explain what effect the per unit tax had on consumer surplus, producer surplus and deadweight loss. c) List three reasons a government may impose a tax. Discuss the link between government revenue from taxation and elasticity of demand.
- The market for pizza is characterized by a downward sloping demand curve and an upward sloping supply curve. Suppose that the government forces each pizza house to pay a Php2 tax on each pizza sold. Illustrate the effect of this tax on the pizza market. Label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?The U.S. subsidizes domestic farmers to ensure that they remain profitable and continue to produce agricultural products. Explain the main argument for ensuring domestic production of agriculture products (even though domestic-produced agriculture costs buyers more than foreign-produced agriculture) and not needing to rely 100% on foreign-produced agriculture. Who are the "winners" of the farming subsidies? How do they benefit? Who are the "losers" of the farming subsidies? What does it cost them?22. What public correction would be needed to eliminate the dry loss caused by steel production? A. Subsidies to steel buyers. B. The levying of a tax on steel producers. C. Subsidies to steel producers. D. The levying of a tax on steel buyers.
- With examples or illustrations, explain any four conditions that can lead to market failure in Ghana. 8. With specific examples, explain any four situations in which market efficiency do fail. 9. With examples, explain any four ways by which taxation helps government role in Public FinanceA5 In a closed economy, the demand and the supply function for a given commodity are QD =150-2p and QS = - 50+2p, respectively. Suppose that the government provides a subsidy equal to16 Euros per unit of quantity supplied. Determine the price the producers receive, the price the consumers pay, the total sales, and the cost to the taxpayers in the industry equilibrium with the subsidy.Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. 5. How much is the total surplus, with out sales tax? Use a number, 2 decimal values, no commas, no space, no signs. * 6. How much is the consumer surplus, with out sales tax? Use a number, 2 decimal values, no commas, no space, no signs. *
- qD = 100 – 0.5p, qS = 2p – 20 What happens to this market if the government imposes a tax of $10 per unit on the producers? Use qt and pt to denote the quantity and price of equilibrium after the tax.Question 17 If a tax (paid by consumers) is levied on a good, this would move its demand curve to the left. cause a movement along the demand curve to a (lower price, higher quantity) point. cause a movement along the demand curve to a (higher price, lower quantity) point. move its demand curve to the right.P3. Graphically explain the negative effects of quotas. How about subsidies? Label and explain results in detail.