Example 5. Maximizing Tax Revenue. Suppose the demand and supply functions for a product are p = 2800-8q-q/3 and p = 400+2q respectively, where p is in dollars and q is the number of units. Find the tax t that will maximize the tax revenue T, and find the maximum tax revenue.

Q: Compared to consumers, producers will lose the greater amount of surplus from a tax if supply is…

A: The correct Option is (A) That is the supply is more elastic than the demand

Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

A: Tax imposed on per gallons is a direct tax example . But burden of tax on consumer and producers…

Q: Suppose that the demand and supply functions for a good are given as follows: 1728 Demand: Q %3D…

A: Demand: Q = (1728 / P) Supply: Q = P2 At equilibrium, demand = supply => (1728 / P) = P2 =>…

Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…

A:

Q: Given the following information QD= 240-5P QS= P where QD is the quantity demanded, QS is the…

A: Given information: Demand equation: 240-5p Supply equation: p Imposition of a $12 per unit tax.

Q: how much total tax revenue is ultimately paid by firms

A: Answer to the question is as follows:

Q: The demand and supply in a perfectly competitive market are QD = 60 - p and QS = 2p , respectively.…

A: QD=60-p    and QS=2p In market equilibrium QD=QS so p=$20 and quantity =40 units

Q: Suppose the following demand and supply function of a commodity.…

A: Given: Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P

Q: - The greater the elasticities of demand and supply the:

A: As per fundamental economic hypothesis, the supply of a goods increment when its value rises. Then…

Q: Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the…

A: ANS QD=240-5P QS=P At equilibrium QD=QS ∴240-5P=P ⇒6P=240 ⇒P=2406=40 Therefore, the equilibrium…

Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…

A: We are going to solve for tax revenue maximisation to answer this question.

Q: The Health Ministry is evaluating the data of the soft beverages market. Demand function: Qp = 270 –…

A: Equilibrium is found by the intersection of dd(demand) and ss(supply) curve. TS(total surplus) is…

Q: Imposing a sales tax on sellers of a product has an effect that is similar to which of the…

A: Implementation of sales tax on the sellers will affect the supply of the goods.

Q: Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the…

A: With the impair of tax price received by seller decreases.

Q: Given the following information QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the…

A:

Q: Part d, e

A: *Solving only parts d and e.d) The supply function is: P = 11 + Q , andThe demand function is: P =…

Q: In this problem, p is the price per unit in dollars and q is the number of units. If the demand and…

A: The equation of demand curve shows the inverse relationship between price and quantity demanded. On…

Q: Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity demanded, Qs is the…

A: According to question given that demand and supply function, we have to deduce the new supply and…

Q: QUESTION 13 Suppose the market demand for a good takes the form: Qp=100 - 2P and market supply takes…

A: A market refers to the point where consumer and producers for the particular commodity interact to…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…

Q: The market demand and supply functions for a good are: QD = 260 - 50P and QS = -40 + 10P. The…

A: Given demand and supply equations are: QD = 260 - 50P QS = -40 + 10P

Q: Suppose that the demand and supply functions for a good are given as follows: 1024 Demand: Q°…

A: We are going to find the Elasticity of demand & Supply to answer this question.

Q: Find the consumer and producer tax burden. e) Calculate the tax revenue that the government…

A: The tax Shifts the supply curve to the left and decreases supply which decreases the quantity and…

Q: Demand for a product is described by the price-quantity curve p = 225 0.2g and supply is described…

A: We are given:  Demand: Pd = 225 - 0.2 q1/2Supply: Ps = 45 + 0.2 q1/2

Q: The Health Ministry is evaluating the data of the soft beverages market. Demand function: Qp = 310 –…

A: The total surplus in a market is a measure of the overall happiness of all market participants. It's…

Q: Suppose Suzuki has the following demand and supply function for Cultus VXL:  Qd = 55 - 5P…

A: Equilibrium is achieved at the output level where quantity demanded equals quantity supplied.

Q: 28. In the long nun, the incidence of a sales tax in an industry with constant returns to scale is…

A: The incidence of tax would be the first point of effect of the tax imposed which would affect the…

Q: Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If…

A: The burden of a tax is generally shared by the buyers and sellers in a market.  In other words, the…

Q: If the demand for automobiles is price elastic and an excise tax is levied on sellers of automobiles…

A: The elasticity of demand is the percentage change in quantity demanded due to a unit percentage…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: With the introduction of tax price received by seller decreases leading to decrease in producer…

Q: The short-run market demand and supply curves for good X are as follows: QD = 20 - 4P QS = 7 +…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: In a market, the demand function is given by the equation Q = 150 - P and the supply function is…

A: Q = 150-P  ----------> demand equation Q = -30 + 3P  -----> supply equation At equilibrium,…

Q: Given the following information Q, = 240- 5P %3D Qs = P where Qp is the quantity demanded, Q, is the…

A: Equilibrium is achieved where quantity supplied by the producer matches quantity demanded by the…

Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…

A: Answer: Given, Demand function: p=128-2q2 Supply function: p=20+9q After-tax the price received by…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: With the introduction of tax price paid by consumer increases leading to decrease in consumer…

Q: A specific tax will be imposed on a good. The supply and demand curves for the good are shown in the…

A: The term "tax incidence" (or tax incidence) refers to how a tax burden is distributed across…

Q: The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=320−5P…

A: Demand function: QD=320−5P Supply function: QS=−40+5P

Q: When the absolute value of price elasticity of demand is greater than the absolute value of price of…

A: The customers will bear a larger fraction of the tax imposed if the demand (dd) is going to remain…

Q: The efficiency loss of imposing an excise tax is due to: a. Paying a higher price per unit. b.…

A: The efficiency loss occurs due to the over production or underproduction. On the other hand, an…

Q: The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q,…

A: a. Equilibrium price = $40 Equilibrium quantity = 30 b. Tax burden on demander = $2

Q: Part a, b, c

A: Hi, since you have posted a question with multiple sub parts, we will be answering only first three…

Q: Consider a market where the demand and supply for the good are described by the following equations:…

A: QD= 225-3P  QS=-22.5 +1.5P It can be written as, P=(225-Q)/3 P= (-22.5-Q)/(-1.5) P=(22.5+Q)/1.5+3…

Q: Based on the following supply and demand functions P=0,+8 and P = -3Q, +80, If the government…

A: P = Qs +8  P = -3Qd + 80  For equilibrium, Demand = Supply Qs +8  = -3Qd + 80   4Q = 72 Q = 18 units…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: ANS Given; QD=240-5PQS=P At equilibrium QD = QS ∴240-5P=P⇒6P=240⇒P=2406=40 Putting P = 40 in the…

Q: Suppose the following demand and supply function of a commodity.                          15 Qd =…

A:

Q: Tax incidence. Given: Demand (D): P = 100 – 1.5 Q Q* = 40 P*=40 Supply (S): P = 20 + 0.5 Q a.…

A: Since you have posted a question with multiple sub-parts, we will solve first three questions for…

Q: If the government imposes a $5 excise tax on the production of wine, then from the perspective of…

A: Consider a liner supply function P=a+bQ         .... (1)