Consider the market for pork illustrated in the graph. Suppose initial demand (D') isQ = 290 – 20pand supply (S') isQ = 80 + 40pand that a $3.00 tax is charged to consumers, shifting the demand curve to D.Using the original and after-tax pork demand functions and the supply function, derive the initial equilibrium price andquantity and the after-tax equilibrium price and quantity.%24(Enter all responses using real numbers rounded to two decimal places)The equilibrium price is initially $ per kg.P1eyP2D2D1Q2 Q,Q. Million kg of pork per yearSEP2430tvHelp Me Solve ThisText PacesHAT More Heinear AllMacBook Air80DIIescF10F11F3F4F5F6F7F8F9F1F2@#$&*13456.78.PP. S per kg>

Answered: Image /qna-images/answer/bc965126-51d1-406d-b5ca-f3ccd294cd1e.jpg

Answered: Consider the market for pork…

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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For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation 2.2. In each instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries.
Suppose the following demand and supply function of a commodity. 15 Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P Find out the equilibrium price and quantity before tax.
When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes.When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes. Since the price-demand and supply-demand equations are linear; Find and interpret the market equilibrium point after-tax if the consumer is taxed at a rate of 0,75 TL per product.
Algebraically, solve for the after tax equilibrium price and quantity in the corn market, if the government collects a specific tax of t=$2.40 from customers. The before-tax linear demand function for U.S. corn is given as Q=15.6-0.5p and the original supply curve is given as Q=9.6+0.25p. Please show with a diagram.
Suppose the supply of a good is given by the equation QS=600P−1,200 , and the demand for the good is given by the equation QD=1,600−200P , where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $2.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows: 1. The equilibrium quantity produced 2. The equilibrium price consumers pay for the good 3. The price received by sellers Before Tax After Tax Equilibrium Quantity (Millions of units) Equilibrium Price per Unit Paid by Consumers Price per Unit Received by Sellers Given the information you calculated in the preceding table, the tax incidence on consumers is per unit of the good, and the tax incidence on producers is per unit of the good. The government receives in tax revenue from levying an excise tax of $2.00 per unit on this good. True…
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Removing the excise tax on product X will
The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=270−4P Supply function: QS=−70+4P Submit answers in two decimal places if you get answers in decimals/fractions (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?
Suppose the generalized demand function for good X is Qd=60-2Px+0.01M+7Pr a.Suppose M=40,000 and Pr=20 what is the direct demand function b.Suppose the supply function is Qs=-600+10Px, what are the equilibrium price and quantity? c.What happens to equilibrium price and quantity if other things remain the same as in part (b) but income increases to 52,000? d.What happens to equilibrium price and quantity if other things remain the same as in part (b) but the price of the related good decrease to 14? e.What happens to equilibrium price and quantity if other thing remain the same, income and price of related goods are at their original levels and supply shifts to Qs=-360+10Px?
Suppose demand and supply are given by Qd = 60 − P and Qs = 1.0P − 20.a. What are the equilibrium quantity and price in this market?Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded: Quantity supplied: Shortage: Full economic price:
Given the following information QD = 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 the market. Determine Demand an Supply equation after the 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.
Using data on the market of a particular product, the following show the estimated demand and supply equations respectively Qd = 4,437.50 − 332.5P and Qs = 2,250 + 300P. If the government will intervene in this market and imposes that the maximum price will be 25% less than the market price (round-up to six decimals), F. How much would be the quantity demanded? Round-up to two decimals. G. How much would be the quantity supplied? Round-up to two decimals. H. Based on the market price of the product and slope of supply equation, what is the condition in the market? Explain concisely.

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