Q: How to determine consumer surplus, producer surplus, tax revenue, economic surplus after tax?
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Discuss and graphically explain how government intervention affects the economic surplus and efficiency
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- How will the imposition of government provision impact consumer surplus, producer surplus and total surplus?How will the imposition of the chosen government policy impact consumer surplus, producer surplus and total surplus in this scenarioPlot the supply and demand functions on a sheet of graph paper. Suppose the government sets a price control for a pound of almonds at $14. On the graph, identify consumer surplus, producer surplus, and the deadweight loss.
- Beginning with the initial equilibrium, suppose the government sets the price of a pound of almonds at $14. On a graph, identify consumer surplus, producer surplus, and the deadweight loss.Describe how government intervention affects the supply and demand equilibrium.How to determine consumer surplus, producer surplus, tax revenue, economic surplus after tax?
- Identify a newspaper article that illustrates a market failure in Trinidad and Tobago. Market failure: Water pollution. (i) Identify the type of market failure being discussed in the article and discuss why market failure occurs in this scenario. (ii) Suggest a relevant government policy that would yield an efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. (Maximum 30 words). (iii) Carefully explain how the imposition of the chosen government policy impacts consumer surplus, producer surplus, and total surplus in this scenario. (Maximum 30 words)Explain the origin of both consumer surplus and producer surplus and explain how properly functioning markets maximize their sum, total surplus, while optimally allocating resources.Describe how government intervention affects the supply and demand equilibrium. by using the two illustrations above.
- Explain the efficiency implications of a selective tax on a commodity, using the consumer surplus approach and a diagram as part of your answer. Use a constant-cost, i.e., horizontal, supply curve.Suggest a relevant government policy that would yield the efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. 2. Carefully explain how the imposition of the chosen government policy impact consumer surplus, producer surplus and total surplus in this scenario.28. What is the size of producer surplus when Price Floor of $9 is imposed? 29. What is the size of deadweight loss from Price Floor of $9? 30. What is the size of social surplus when Price Floor of $9 is imposed?31. What is the difference between total surplus before and after price control is imposed?32. How does this number compare to the DWL