In this problem, p is the price per unit in dollars and q is the number of units.If the weekly demand function is p = 128 – 2g2 and the supply function before taxation is p = 20 + 9g, what tax per item will maximize the total tax revenue?/item

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

In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 128 – 2q2 and the supply function before taxation is p 20 + 9q, what tax per item will maximize the total tax revenue? /item

In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 128 – 2q2 and the supply function before taxation is p 20 + 9q, what tax per item will maximize the total tax revenue? /item

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section: Chapter Questions

Problem 8SQ

See similar textbooks

Related questions

Q: Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q.…

A: Given, Demand: P = 100 - 2Q Supply: P = 20 + 6Q Tax levied on buyers = 8 TL

Q: Price Amount Requested (Unit) Amount Offered (Unit) (IDR) 2400 2000 120 180 160 150 Based on the…

A: We derive the demand and supply curves first. Amount requested refers to quantity demanded and…

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

A: After the imposition of tax there is reduction in quantity sold due to increase in price paid by…

Q: Consider the following demand and supply functions: Qd = 80 − 2P Qs = −100 + 8P

A: Equilibrium refers to the situation where quantity demanded equals quantity supplied. The market…

Q: •The demand function for a product is represented by the equation Qd = 20 - 2P and its supply…

A: We are given : Demand: Qd = 20 - 2Pd Supply: Qs = Ps- 4 Remark : Pd : Price which the consumer…

Q: find and interpret the market balance point after tax.

A: Here from the given information in question, computing following demand and supply equations- Qd…

Q: Because of the sales tax in a particular region, a customer in a supermarket must pay $1.46 for a…

A: Answer: Effective tax rate is the average tax rate that is paid by a corporation or an individual.

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: Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 +…

A: Demand: P = 24 - 1/2Q Q = 4 + 2P P= Q/2-2 Equilibrium: Q=22 units, P= IDR13 The government provides…

Q: b) Suppose that in a certain market, the demand function for a product is given 10p + q = 3000 and…

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: 9. The demand and supply functions for product x are given, respectively, by the equations: P-83.6-…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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…

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: Example 5. Maximizing Tax Revenue. Suppose the demand and supply functions for a product are p =…

A: The government imposes taxes to correct the market failure caused in a free market and thereby…

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

A: Government impose tax on the goods and services on the market to generate revenue. The tax on goods…

Q: Suppose the government uses the following equation to compute a family’s tax liability: Taxes…

A: The tax credit or liability (TAX) can be calculated by using the following formula.

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

A: After the imposition of tax price paid by consumer increases and price received by producer…

Q: The demand function for beer is given below, where p is the retail price and D(p) is the demand in…

A: The elasticity of demand (Ed) is an economics term that represents the responsiveness (sensitivity)…

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

A: Demand function, P=26-qSupply function, P=16+4q

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

A: QD = 240 - 5P QS = P At Equilibrium Price, QD = QS 240 - 5P = P 6P = 240 P = 40 Put P = 40 QD = 240…

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: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…

A: Consumer surplus refer to the difference between the maximum willing to accept price and actually…

Q: Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P…

A: Given, Qd = 240 - 5P Qs = P Tax on supplier = $12 per unit

Q: The supply and demand curves for sugar are given by the following: P= 10+2Q (Supply) P=40-2Q…

A: Supply curve : P = 10+2Q Demand curve : P = 40-2Q At equilibrium, Demand = Supply 10+2Q = 40-2Q

Q: Suppose that there is a market demand and market supply curve given by P = 10 - 0.1Q and a market…

A: Market demand curveP=10-0.1QD0.1QD=10-PQD=100-10PMarket supply…

Q: The government is evaluating a tax on alcoholic beverages of $ 10 per unit traded. Suppose that the…

A: QD = 400-p QS = 9p Now, to find quantity before tax, we have to do QD=QS Therefore,…

Q: The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 -…

A: According to the question, The demand and supply functions for a product is given. Demand…

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

A: Equilibrium is achieved where quantity supplied equals quantity demanded.

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: 1) The demand function for a product is shown by the equation P = 15 – Q and the Supply function P =…

A: a. Demand Function:P=15-QQ=15-PSupply Function:P=3+0.5Q0.5Q=P-3Q=2P-6 Now, we need to determine the…

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: 0-1080-7P…

A: Demand equation: Q = 1080 - 7P => P = (1080 - Q)/7 -----------> eq(1) --------------------…

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

A: After the imposition of tax the price paid by consumer increases whereas price received by producer…

Q: Refer to Figure 4-4. The per unit burden of the tax on buyers is a. P2 minus P0. b. P2 minus P1.…

A: Given: D is the demand curve, S is the supply curve, P1 and Q1 are equilibrium price and quantity…

Q: Consider the demand and supply for strawberries to be given by Qd= 10-0.33P and Qs=-6+P and the…

A: ‘Equilibrium’ refers to situation where quantity(Q) demanded equals quantity(Q) supplied. The…

Q: Suppose an additional "special" tax of $0.10 per litre is imposed on the sale of gasoline in one…

A: Here, before tax price is $1.30 and after the imposition of $0.10, new price is $0.38.

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: The greater the price elasticity of supply and demand, the more the market volume decreases when…

A: Price elasticity of supply and demand determine the incidence of tax.

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: Assume the marginal tax rate for income above $25000 has risen to 30 percent. If the tax rate for…

A: Marginal tax rate is applied in brackets of income. It is the additional tax paid out of additional…

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

A: A tax reduces the surplus for producer as well as consumer.

Question

In this problem, p is the price per unit in dollars and q is the number of units.
If the weekly demand function is p = 128 – 2g2 and the supply function before taxation is p = 20 + 9g, what tax per item will maximize the total tax revenue?
/item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or Â£0.07 per liter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or Â£0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about Â£0.40 per liter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?16
In this problem, p is the price per unit in dollars and q is the number of units.If the demand and supply functions of a product are p = 6500 − 5q − 0.7q2 and p = 500 + 10q + 0.3q2, respectively, find the tax per unit t that will maximize the tax revenue T. t = $ /item
Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose at the market equilibrium, the price elasticity of supply is 5/9 and the price elasticity of demand is 10/9. Approximately what proportion of a small per unit tax will be paid by consumers?
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; If a tax is applied to the consumer at the rate of T=0.75 TL per product, find and interpret the market balance point after tax.
Suppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the producers is: None of these $84 $18 $63 $21
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; If a tax is applied at the rate of T=1.25 TL per product sold to the manufacturer, find and interpret the market balance point after tax.
The demand function D(p) = 200 - 4p and supply function is S(p)= 6p Find the equilibrium price and quantity If government collect $10 unit tax from each product, find the equilibrium demand and supply prices. How much tax revenue is collected? What is the deadweight loss amount as a result of taxation?
Suppose demand is represented by P = 100 - 2Q, and supply is represented by P = 5 + 3Q. If the government imposes a $5 per unit tax, to be collected from the sellers, what is the price elasticity of demand between the pre- and post-tax equilibriums? 0.5 0.63 1 1.7
The demand function for beer is given below, where p is the retail price and D(p) is the demand in gallons per capita. For the demand function, find the elasticity of demand E(p) for any price p. [Note: You will find that demand is inelastic. This means that taxation, which acts like a price increase, is an ineffective way of discouraging liquor consumption, but is an effective way of raising revenue.] D(p) = 6.913p−0.142
given the following information Qd=240 -5p and Qs= P Where Qd is the quantity demanded and Qs is the quantity supplied and P is the price. suppose the government decided to impose a tax of $12 per unit on the sellers in the market. Determine Demand and supply equation. Recheck consumer surplus calculation. Calculate Tax revenue, deadweight loss and total surplus after tax
how much total tax revenue is ultimately paid by firms
Which of the following is NOT the impact from a unit sales tax on a product? Group of answer choices It will shift the market demand curve to the left. It will shift the market supply curve to the left. It will lower the producer surplus. It will lower the consumer surplus.