m price of a goozum is $12, and the equilibrium quantity is 1,000 units. Suppose that every time a goozum is purchased, another citizen’s welfare is improved by $1. At the equilibrium quantity, we can tell that 7.
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- Fill in the Demand Schedule below, and draw the Three Separate Private Demand functions. Then draw on a separate graph the Market Demand function and the Market Supply function Show the market equilibrium price and quantity. Is there a shortage or a surplus when the price is P=10 and by how much? Explain the market mechanism that restores equilibrium when we have either a shortage or a surplus. Price John James Jane Market Dem. Market Sup. 2 6 8 6 -- 4 4 6 5 5 6 2 4 4 10 10 0 2 3 15The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are? The government decides to: a) Impose a 25% Tax on X? b) Impose a 5 Rs /unit Tax on Y? c) Give a 10% subsidy on good z? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Analyze the impact of each of these policies separately on equilibrium prices and quantities?The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are? The government decides to: a) Impose a 25% Tax on X? b) Impose a 5 Rs /unit Tax on Y? c) Give a 10% subsidy on good z? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Provide theoretical justification (using diagrams) of all results obtained?
- suppose that the local government of Columbus decides to institute a tax on seltzer consumers. Before the tax, 20,000 packs of seltzer were sold every week at a price of $10 per pack. After the tax, 15,000 packs of seltzer are sold every week; consumers pay $12 per pack (including the tax), and proceeds nrecieve $5 per pack.Suppose before a tax is created, the market price is $10.66 and the quantity is 120. Now suppose a government creates a $4.3 excise tax paid by sellers. After the tax, the quantity falls to 100 and the market price is $13.76. Based on this information, the tax incidence on buyers is what?The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz determineThe equilibrium prices and quantities of all three goods are? The government decides to: Impose a 25% Tax on X? Impose a 5 Rs /unit Tax on Y? Give a 10% subsidy on good z? Analyze the impact of each of these policies separately on equilibrium prices and quantities? Also calculate changes in consumer and producer surpluses, and amount of revenue earned by the government? Repeat this exercise when policies (a, b), (b, c) and (a, b, c) are jointly implemented. Which policy choice is best? Why? Provide theoretical justification (using diagrams) of all results obtained?
- Suppose that the government wants to tax wealthy people. They notice that only wealthypeople buy yachts. So the government decides to tax yachts. Is this an effective way to tax thewealthy? Explain your answerCalculating tax incidence Suppose that the local government of Jacksonville decides to institute a tax on soda producers. Before the tax, 40 billion liters of soda were sold every year at a price of $10 per liter. After the tax, 33 billion liters of soda are sold every year; consumers pay $12 per liter, and producers receive $7 per liter (after paying the tax). The amount of the tax on a liter of soda is per liter. Of this amount, the burden that falls on consumers is per liter, and the burden that falls on producers is per liter. True or False: The effect of the tax on the quantity sold would have been larger if the tax had beenSolve economic Which one of the two policies, a tax on pork meat consumption, or a tax on pork meat production, is more efficient? Why?
- Economists in Champaign have been studying the local market for pizza. The market is described in the graph below: Some research by the local university shows that eating pizza improves health in several ways. The local government decides to subsidize pizza consumption paying for $2 of every pizza sold(essentially a negative tax of $2). How much will the government spend with this subsidy?The demand for tote bags is Q = 2500− 100P and the supply of tote bags is Q = 50P – 500. If a $2 tax is levied on the sale of tote bags , who bears the statutory incidence? Who bears the economic incidence of this tax? How is it divided up?Assume the government imposes a $2.00 tax on a good that costs $5.00. If the price buyers pay increases to $6.50 and the price sellers receive decreases to $4.50, who bears the greater burden of the tax? a. sellers b. buyers c. neither, the burden is split evenly
