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- What is the nature of the deadweight loss accompanying taxes? Why is it often referred to as an excess burden?Let Q=2P be supply and Q=20-2P be demand. The equilibrium quantity with a tax of 2 is......... and the price paid by the consumer will be........Assume that the demand function is given by x = p-εd and the supply function by y = . Find the equilibrium price. What is the effect on the equilibrium price of the introduction of a tax t = 1/10 if εd = εs = ½ ? Describe how the incidence of the tax is divided between consumers and suppliers.
- Suppose the equilibrium price in a market is $4. If a $4 per-unit tax is levied on the market, the price buyers effectively pay with the tax is $6. which of the following is true? Demand is more elastic than supply. Supply is more elastic than demand. Supply and demand are equally elastic Demand is unit elasticSuppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be paid by energy suppliers. Assuming demand for gasoline is more inelastic than supply of gasoline, then the tax revenue economically generated by this tax comes from? a. The tax payment by the energy suppliers as they are ordered by law to pay the tax. b. The price disruption caused by the tax and the revenue will economically come from suppliers more so than consumers. c. The price disruption caused by the tax and the revenue will economically come from consumers more so than firms. d. The price disruption caused by the tax and the revenue will economically come from consumers and firms in equal amounts.Given the following information: 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 demand the seller’s price after tax. Given the following information: 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 the quantity after tax
- Suppose demand for good X is given by QD = 900- p/2 where p is the price and QD the quantity demanded. Supply is given by QS = p/4.Suppose 60 TL tax is imposed on each unit of X that is purchased.What is the burden of the tax? Explain the key factors that determine the incidence of the tax.Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine: Demand and Supply equation after the tax.Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the producer surplus after tax
- Market demand for Mandrake roots is given by Q=417-4P and market supply is given by Q=3P. The government of Sodden needs money, so it imposes a per unit tax of $3 on mandrake root. What is the market quantity when the tax is imposed?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 TOTAL SURPLUS AFTER TAX 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 DEAD WEIGHT LOSS OF THE TAX 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: TAX REVENUEGiven a demand curve of P = 70 - 1.5Q and a supply curve of P = 2 + 0.5Q, with a tax of 44, solve for the resulting CS (Answer 1) and PS (Answer 2).
