Imagine that the demand curve for beer is given by P=9-Q and supply for beer is given by P=1+Q. What is the deadweight loss associated with a tax of $3 per unit? 12 O 2.25 O None of the above. O 6.25
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- Consider that the market demand for a textbook is given by P = 100 - 20 land the market supply is given by P = 10 + Q. Suppose a price ceiling of $20 is imposed. What is the deadweight loss? O 300 O 450 O 600 O 150For Frisbees, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $20 per unit is imposed on blue Frisbees. The tax reduces the equilibrium quantity in the market by 300 units. The deadweight loss from the tax is. O. $3,000 O. $6,000 O. $1,000 O. $2,000Suppose a demand curve has a vertical intercept of (0,80). Suppose a supply curve has a vertical intercept of (0,0). The equilibrium price is $30 and the dollars. equilibrium quantity is 40. The total surplus is O 800 O 1600 O 2400 O 3200
- d. Holding Donald's income and Pd constant at $120 and $1 respectively, what is Donald's demand curve for carrots? e. Suppose that a tax of $1 per unit is levied on donuts. How will this alter Donald's utility maximizing market basket of goods? f. Suppose that, instead of the per unit tax in (e), a lump sum tax of the same dollar amount is levied on Donald. What is Donald's utility maximizing market basket? g. The taxes in (e) and (f) both collect exactly the same amount of revenue for the government, which of the two taxes would Donald prefer? Show your answer numerically and explain why Donald prefers the per unit tax over the lump sum tax, or vice versa, or why he is indifferent between the two taxes.**Asking for part (d) only** Suppose the demand for crossing the Golden Gate Bridge is given by Q = 10,000 − 1,000P. (LO6) a. If the toll (P) is $3, how much revenue is collected? b. What is the price elasticity of demand at this point? c. Could the bridge authorities increase their revenues by changing their price? d. In 2019, the San Francisco Bay area Water Emer- gency Transportation Authority (WETA) announced it was considering the implementation of hovercraft service as a supplement to existing ferries. Suppose that a fast hovercraft alternative to the Golden Gate Bridge is implemented between Marin County and San Francisco. How would the new service affect the elasticity of demand for trips across the Golden Gate Bridge?Suppose demand and supply are given by: (LO3, LO4) Qx d = 14 − 1/2 Px and Qx s = 1/4Px − 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. B. Supposed a $ 12 excise tax is imposed on the good. Determine the new equilibrium price and quantity C. How much tax revenue does the government earn with the $12 tax
- Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. 1. If the government imposed Php 0.75 tax, how much would be the tax burden of the seller?2. At equilibrium point, how much is the consumers surplus? how much is the total surplus 3. What is the elasticity of supply for the product at equilibrium point? how about the elasticity of demand at equilibrium point?( B 41 PRICE (Dollars per unit) 14 12 4 O 16 9 8 6 2 Statement 0 2 P 4 +*X+ R +2 W 6 S 10 N 12 14 8 QUANTITY (Units) R Q P + + 16 18 20 Using the graph, complete the table that follows by indicating whether each statement is true or false. Curve QQ is more elastic between points V and X than curve RR is between points V and Y. Between points V and Z, curve SS is perfectly inelastic. Between points V and X, curve QQ is inelastic. True False O Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Suppose that market supply and demand for Cola are linear and continuous. At competitive equilibrium, the price of Cola is $9.09, with 10 people each buying half a litre in quantity. The government subsidises the consumption of Cola by $2.7 per litre, and in doing so, leads the market to a new equilibrium price of $7.74 and quantity of 17 litres.What is the deadweight loss of this policy?O a. $9.09O b. $8.50O c. $32.40O d. $16.20 Type out the correct answer and give correct explanation of it within 40 50 minutes. Will give upvote only for the correct answer. Thank you
- Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10.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 $42 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 $30 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded:Quantity supplied:Shortage:Full economic price: $Suppose demand and supply are given by: Q^d=14-0.5P and Q^s=0.25P-1. Determine the equilibrium quantity and price in this market. Show the equilibrium graphically. Suppose a $12 excise tax is imposed on the good.Determine new supply and the new equilibrium quantity and price. How much does producers' revenue change? How much tax revenue does the government earn?Y7 1- One Suppose P=8-0.2q in each of the two periods MC in each of the two periods =$4 Supply of the resource is 20 units a)Calculate the Dynamically efficient allocation of this depleted resource over the two periods if the discount rate is 10% b)Calculate marginal user cost in each period 2- Consider the inverse demand functions for two users of water A and B User A P=8-0.2 qA User B P=8-0.2 qB If the marginal cost of providing water is constant and equal to $2 and the supply of water is equal to 30 units, solve for the statically efficient allocation of water among the two users