All questions need answering for the second question (the picture without the graph) . Old Equilibrium is on the page with graph Consumer and Producer surplusStaxP$100$70$50$45$X$5D4060Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show allwork.а.How much is the tax per- unitb. How much is the value of X (intercept of the green line). How do you describe what that valueis?C.How much is the consumer surplus before the tax?d. How much is producer surplus before the tax?е.How much is the consumer surplus after the tax?f.How much is producer surplus after the tax?g.How much is the deadweight loss as a result of the tax Assume the old equilibrium before tax remains the same, but now assume the new equilibrium priceis $75 and new equilibrium quantity after tax is 30. Redo the question.a. How much is the tax per- unitb. How much is the value of X (intercept of the green line). How do you describe what that valueis?c.How much is the consumer surplus before the tax?d. How much is producer surplus before the tax?e. How much is the consumer surplus after the tax?f.How much is producer surplus after the tax?g.How much is the deadweight loss as a result of the taxh. Draw the Demand and Supply for question 2, and shade the deadweight loss area. Label all thenumbers. (old and new equilibrium and intercepts)

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Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 40 60 Q Assume an excise tax that has caused a decrease in Supply as shown on the graph above Sho work. a. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what th is? c. How much is the consumer surplus before the tax?

Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 40 60 Q Assume an excise tax that has caused a decrease in Supply as shown on the graph above Sho work. a. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what th is? c. How much is the consumer surplus before the tax?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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The figure below shows a market of good X. Suppose that the government levied the tax of 30 on X. Regarding the after-tax equilibrium quantity, does it matter on which side (sellers or buyers) the tax was levied? What is the quantity and the price buyers pay and the price sellers receive in the after-tax equilibrium? Quantity: Price buyers pay: Price sellers receive:
Using the following diagram (the equilibrium quantity is 5.5, the supply curve intersects the price axis at 3.5), answer these questions: a) If a tax of $2 were imposed, what price would buyers pay, and what price would suppliers receive? How much revenue would be raised by the tax? Compute the total consumer surplus, producer surplus, and welfare after the introduction of the tax. b) If a subsidy of $5 were imposed, what price would buyers pay, and what price would suppliers receive? How much would the subsidy cost the government? What would be the consumer surplus and the producer surplus? c) If the government imposed a binding price floor of $7 and compensated the producers by buying the excess surplus at the stated price: What would be the consumer surplus, the producer surplus, the government expenditures, and total welfare?
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1. The old demand was Qd = 180 – 2P. 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. 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. Explain the following: a. Which of the two options would be preferred by the producers? b. Which of the two options would be preferred by society as a whole?
Show all work please thanks D.) Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) E.) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x 1⁄2) F.)In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) please show calculations so I know how to arrive at those numbers! Thank you
Q^d= 9.5 - 2p Q^s= 0.6p Tax. Suppose that the government imposes a tax equal to T = 0.50 which must be paid by buyers for every donut they purchase. (a) How does this tax change the supply and/or demand curve for donuts? (b) Solve for the new equilibrium price and quantity of donuts. Give the price paid by the buyer and the price received by the seller. (c) Draw a single supply and demand diagram that compares the equilibrium with and without the tax. Be sure to indicate the equilibrium quantity of donuts sold as well as the price paid by buyers and the price received by sellers in each case. On the same diagram, indicate the areas which represent consumer and producer surplus, tax revenue and the deadweight loss arising from this tax. (d) Calculate the amount of producer and consumer surplus at this new equilibrium price and quantity, as well as the amount of tax revenue and the deadweight loss. (e) Is total surplus higher than, lower than or the same as in question one? Give an…
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