In the market for millet, the demand curve qd-50-3p and the supply curve is q=2p. the government decides to raise revenue by taxing consumers c5/3 for every tonne of millet purchased. the price(p) is measured in ghana cedi per tonne; and, quantity(q) is in tonnes. use this information to answer questions a to c a). how much tax revenue is this policy going to generate for government? b) what proportion of the tax is paid by producers? c). what proportion of the tax is paid by consumers?

In the market for millet, the demand curve qd-50-3p and the supply curve is q=2p. the government decides to raise revenue by taxing consumers c5/3 for every tonne of millet purchased. the price(p) is measured in ghana cedi per tonne; and, quantity(q) is in tonnes. use this information to answer questions a to c a). how much tax revenue is this policy going to generate for government? b) what proportion of the tax is paid by producers? c). what proportion of the tax is paid by consumers?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter16: Public Goods And Public Choice

Section: Chapter Questions

Problem 14PAE

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When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes.When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes. Since the price-demand and supply-demand equations are linear; Find and interpret the market equilibrium point after-tax if the consumer is taxed at a rate of 0,75 TL per product.
Due to good weather there the demand equation moved from Qd =180-2p to Qd-190-2p. The supply equation is -15+p. the government is try to decide either to maintain the number of quoata which at $72 is 36 units and let the market adjust or maintain the price support and increase tehe number of quotas. 1. if the government decides to maintain the number of quoatas and let the market adjust . calculate : the price observed in the market, the consumer surplus, the producer surplus and dead weight loss. 2. if the government increases the number of quoatas available to 72 units calculate the consumer surplus, producer surplus and dead weight loss
i.If the market conditions for a given good are specified by Qd=60,000-500P and Qs=500P, If government decides to set the price at 40 current units, what policy is this? What are the implications of this action? ii.If the government imposes a tax of Gh¢20 on the good above, establish the new equilibrium price and quantity and deduce the burden of tax on consumer and producer and identify the nature of commodity in question
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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: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. 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. Calculate: i) the consumer Surplusii) the producer surplusiii) deadweight loss HINT: Sketch the supply and demand equations. Which of the two options would be preferred by the producers? Which of the two options would be preferred by society as a whole?
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GIVEN THE FOLLOWING QD=240-5P QS=P WHERE QD IS THE QUANTITY DEMANDED, QS IS THE QUANTITY SUPPLIED AND P IS THE PRICE. SUPPOSE THAT THE GOVERNMENT DECIDES TO IMPOSE A TAX OF $12 PER UNIT ON SELLERS IN THIS MARKET DETERMINE: PRODUCER SURPLUS AFTER TAX QUANTITY AFTER TAX SELLER’S PRICE AFTER TAX BUYER’S PRICE AFTER TAX PLEASE ANSWER ALL QUESTIONS! THANKS