Given the following information: Qs = 200 + 3P Qd = 400 – P, where Qs is the quantity supplied, Qd is the quantity demanded and P is the price. 1. From this information compute the equilibrium price and quantity. 2. Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: Solve for the equilibrium price for sellers and buyers).
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Given the following information:
Qs = 200 + 3P Qd = 400 – P, where Qs is the quantity supplied, Qd is the quantity demanded and P is the price.
1. From this information compute the
2. Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: Solve for the equilibrium price for sellers and buyers).
Step by step
Solved in 2 steps
- 1.Given the following informationQ_d = 240 – 5p Q_s = P Where Q_d is the quantity demanded, Q_s is the quantity supplied and P is the price. Equilibrium price before the tax? 2.Given the following informationQ_d = 240 – 5p Q_s = P Where Q_d is the quantity demanded, Q_s is the quantity supplied and P is the price. Equilibrium quantity before the tax? 3.Given the following informationQ_d = 240 – 5p Q_s = P Where Q_d is the quantity demanded, Q_s is the quantity supplied and P is the price. Buyers' reservation price? 4.Given the following informationQ_d = 240 – 5p Q_s = P Where Q_d is the quantity demanded, Q_s is the quantity supplied and P is the price. Seller’s reservation before the tax?Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant effect on the price consumers pay, but it will not affect equilibrium quantity very much. In Market B, the same tax will have only a small effect on the price consumers pay, but it will have a large effect on the equilibrium quantity. Other factors are held constant. In which market will the tax have a larger deadweight loss? Market A Market B The deadweight loss will be the same in both markets. There is not enough information to answer the question.The linear demand curve is: Q = 100 - 4P The linear supply curve is: QS = -20 + 2P For each of the following questions, you need to show the basic calculation steps. 1) Given the above market demand and supply curves for the bottled wine in a hypothetical economy, please calculate the market equilibrium price and market equilibrium quantity for a bottle of wine. 2) If the government decides to charge an excise tax at the rate of 3 for each bottle of wine, what is the tax burden on consumers? And what is the tax burden on the firms? Show your calculation steps. B) Who shares more of the tax burden, the consumer or the firms? Please explain the reasons behind it.
- Suppose that a market is described by the following supply and demand equations: QS= 2P QD= 300 - P a. Solve for the equilibrium price and the equilibrium quantity. b. Suppose that a tax of T is placed on buyers, so the new demand equation is QD= 300 - (P + 1) Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c. Tax revenue is Tx Q. Use your answer from part (b) to solve for tax revenue as a function of T.Graph this relationship for T between 0 and 300. d. The deadweight loss of a tax is the area of the triangle between the supply and demand curves. Recalling that the area of a triangle is 1/2 x base x height, solve for deadweight loss as a function of T.Graph this relationship for T between 0 and 300. (Hint Looking sideways, the base of the deadweight loss triangle is T, and the height is the difference between the quantity sold with the tax and the quantity sold without the tax.) e. The government now…Please written by computer source Given the following inverse demand and supply equations: P = 26 - 2 Q P = 2 Q 1. What is the before tax equilibrium quantity 2. What is the before tax equilibrium price 3. If the government imposes a per unit tax on each item, assuming the producers pay the tax, what is the new equilibrium quantity if the per unit tax is 4? 4. Given the change in part 3, what is the new equilibrium price 5. What is the price paid by the consumer 6. What is the price received by the producer 7. What is the per unit dollar value of the consumer's tax burden 8. What is the per unit dollar value of the producer's tax burden For the remaining questions, assume that the government imposed tax in part 3 is paid by the buyer. 9. What is the new equilibrium quantity 10. What is the new equilibrium price 11. What is the price paid by the consumer 12. What is the price received by the producer 13. What is the per unit dollar value of…We have the following demand and supply functions. Q=10-P and Q = 5+ P a. find the equilibrium price and equilibrium quantity b. draw the graph for supply and demand using the functions above. 3. Using the functions from question 2, if the government set a price floor at $10, what would be the quantity demanded and quantity supplied. (Show procedures)
- Suppose you are given the following information: Qs = 200 + 3P Qd= 400 – Pwhere Qs is the quantity supplied, Qd is the quantity demanded and P is the price.I. From this information compute the equilibrium price and quantity. ii. Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers).Suppose the demand and supply of firearms in Jail are given as follows: Demand: P = 630 − 349Q Supply: P = 480 + 2Q in which Q is the quantity of firearms in million units and P is the price per each firearm in Jalian dollars. a. The equilibrium price is [ANS1] Jalian dollars and the equilibrium quantity is [ANS2] million units. b. Suppose the government purchases 10 million units of firearms back from the market. After the government enters the market, on the new demand curve, when the price is 555 Jalian dollars, the total quantity demanded is [ANS3] million units of firearms. c. Suppose the government wants to use such buyback program to reduce the quantity of firearms in the community to zero. The government will need to buy at least [ANS4] million units of firearms from the market and spend at least [ANS5] million dollars. d. Suppose the government wants to use taxation to reduce the quantity of firearms in the community to zero. The government will need to impose a…When graphing a market, one of the key aspects to remember is that equilibrium occurs where supply equals demand. Therefore, you can find the equilibrium price and quantity by setting the supply and demand equations equal to one another. In this case, since domestic demand is P = 11.5 - Q and domestic supply is P = 5.5 + Q, you can find the equilibrium quantity as 11.5 – Q = 5.5 + Q. Solving for Q, you get 2Q = 6 or Q = 3 (which in this case equates then to 300 million bushels). Plugging that answer back into either the supply or demand equation, you find the equilibrium price (which is 8.5 or 85 yuan) or Rent in this case). This is the equilibrium point with no trade.With the application of the world price and then the world price plus tariff, you just need to plug the established prices (6.5 for world price, 6.5 + 1.5 for the tariff) into the supply and demand equations to find the quantity supplied and the quantity demanded with or without the tariff. Recently, China placed tariffs…
- Suppose you are given the following information: Q s = 100 + 3P Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T is taxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers).Suppose the supply of a good by domestic firms is QSD = 10 + 2P and the supply by foreign firms is QSF = 10 + P. The domestic demand for the product is given by Qd = 30 − P. 1. In the absence of a quota, what is the total supply of the good? 2. What are the equilibrium price and quantity of the good? 3. Suppose a quota of 10 units is imposed. What is the total supply of the product? 4. Determine the equilibrium price in the domestic market under the quota of 10 units.Explain why a binding price ceiling on a good is likely to cause misallocation of the consumption of the good among consumers, but not misallocation of the production of the good among firms.
