Question 5: Consumer and Producer surplus Consumer and Producer surplus Stax P $500 $200 $120 $X $50 80 150 Q Assume an excise tax of $130 per-unit tax has resulted in a decrease in Supply as shown on the graph above. Show all your work. a. How much is the value of X (intercept of the green line). How do you describe what that value is? b. How much is the consumer surplus before the tax? c. How much is producer surplus before the tax? d. How much is the consumer surplus after the tax? e. How much is producer surplus after the tax? f. How much tax revenue was raised by the government as a result of this taxation g. How much is the deadweight loss as a result of the tax

Q: The diagram below shows supply and demand diagrams (S and D) for some product. The government then…

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Q: Price 22 20 18 Supply 16 14 12- 10 6 Demand 100 200 300 400 500 600 700 800 900 1000 Quantity 00 2.

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Q: In this diagram how do  you label the change in consumer surplus (increase or decrease) and the…

A: Consumer surplus is the price consumer is willing to pay minus the price that is actually…

Q: 3. The market supply and demand for a product are shown in the diagram below. $10 $6 Supply Demand…

A: a) The price elasticity of supply is a horizontal curve meaning it is perfectly elastic.

Q: b) calculate the consumer surplus before tax. c) calculate the producer surplus before tax. d) For…

A: Consumer surplus and producer surplus refers to the welfare received by the consumers and producers…

Q: (d) For the market for cigarettes with the tax indicate Price received by producers Quantity of…

A: We have given the graph depicting the market for cigarettes.  Initial equilibrium occurs at the…

Q: 15 Price $ 10 5 10 Quantity (gallons)

A: In a market, government receives a tax revenue equals to the multiplication of tax rate and quantity…

Q: Question 10

A: When $3 per unit tax is imposed on the product, the initial supply will reduce and the supply curve…

Q: 1-The excess burden of a tax refers to: Select one: a. how much producers lose in surplus from the…

A: In financial matters, tax incidence or tax burden is the impact of a specific tax on the…

Q: the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20…

A: the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20

Q: Calculate the consumer surplus before tax. b)Calculate the produce surplus before the tax

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: Suppose the market for grass seed (p is the price of grass seed) can be expressed as Demand: QD =…

A: Supply: It is the total amount of goods or services available to consumers.

Q: 1. Understanding the implications of taxes on welfare The following graph represents the demand and…

A: Equilibrium without tax in the market occurs at the intersection of demand and supply.

Q: a subsidy is the opposite of a tax. with a $500 tax on the buyers of laptops, the government…

A: As government provides subsidy of $500 to the buyers, the demand curve shifts to the right from D to…

Q: the deadweight loss created as a result of the tax the total tax revenue collected from this tax the…

A: Pre-tax equilibrium is at intersection of D and S curves. Post-tax equilibrium is at intersection of…

Q: Q4 Suppose the demand and supply curves given in Figure 2 below shows the market of smart phones.…

A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: 2.) Tax incidence is always highest for the side of the market that a.) Has the lowest legal tax…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k…

A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there…

Q: P.B=100 R P=80 P₁=75 1. P P.S=0 =60 1500 1875 S₁=MC D₁=MV Q . Consider the equilibrium after the…

A: Given

Q: 15- 14 13 12 11 10- 9- 7. 6- Price Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Case II: Attached is a graph diagram depicting the market for soft drinks. If an excise tax equal to…

A: The following figure is given:

Q: ewenseal Figure 4-9 S2 $1.40 S, 1.20 1.00 D 90 100 Quantity (billions of gallons) Refer to Figure…

A: From the figure: Initially market runs at point b where equilibrium price is $1.20 and equilibrium…

Q: Fuppose the government implements a $5 dollar per unit sales tax. i. Calculate the new quantity and…

A: Since the Part d is containing 4 subparts so as per answering guidlines, only d part will be solved.…

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the…

A: Consumer and Producer surplus The consumer surplus  basically refers to the difference between what…

Q: QUESTION 4 When government imposes taxes on the buyers O then the demand curve will shift to the…

A: Since you have asked two questions simultaneously that's why I am giving you the answer of only one.…

Q: Hey! so I am just so confused on how to draw this graph. we were kicked out of school before we got…

A: Hey, since there is multiple question posted, we will answer first question.  If you want any…

Q: Question 4 Given: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on…

A: Answer: Given: Quantity demand function: QD=160-5P Quantity supply function: QS=-11+4P Tax on buyer…

Q: If the demand and supply curve for computers is: D = 200 - 5P,    S = 40 + 3P Where P is the price…

A: Incidence of tax on a product decreases both the demand and supply for the product. However this…

Q: 24 22- 20 16- 14+ Supply 12- 10+ D F G H J 6+ 4 L Demand 2+ + > 4 8. 10 12 14 16 One effect of the…

A: tax reduces the quantity sold from 8 to 4 as a result both producer and consumer surplus decreases.…

Q: Given, the total surplus in the market is 1680 pounds. You know that the consumer surplus in the…

A: The market price is determined at a point where the market demand curve intersect the market supply…

Q: In the market for swim suits, demand is P = 53 - 0.013Q and supply is P = 4 + 0.007Q. %3D The…

A: here we calculate the total surplus after the tax by using the given demand and supply , so the…

Q: 1. How will the unit subsidy affect the consumer surplus? Calculate the change in consumer surplus…

A: Consumer surplus: It refers to the surplus that is gained by the consumers. The consumers will try…

Q: Suppose that a buyer values a house at $240,000 and a seller at $200,000. Choose a price that both…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: A government decides to reduce air pollution by reducing the use of petrol and imposes a specific…

A: When the government imposes a specific tax for per unit sold on sellers it is a type excise tax.

Q: Use the graph below to answer the next two questions: P PB-100 P=80 P₁=75 1. 2. P.S=0 =60 1500 1875…

A: Tax refers to the sum of money that governments of a country or state collects from its citizens and…

Q: 5.Given the following information Q_d= 240 – 5p  ,  Q_s = P Where Q_d  is the quantity demanded,…

A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.  i.e.…

Q: Question 5 Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer…

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Q: Figure #3: The graph below represents a $10 per unit tax on a good then the amount bought and sold…

A: We have given the following information

Q: Suppose that the demand curve for wheat is Q = 100 – 10p and the supply curve is Q = 10p. The…

A: Demand curve: Q = 100 - 10p Supply curve: Q = 10p At equilibrium,  Demand = Supply100 - 10p = 10p20p…

Q: Per Pack Price Supply with tax 20.00 Supply before tax 18.00 16.00 Demand 10.00 Quantity Per Year…

A: The consumer surplus refers to the difference between the price that the customers are willing to…

Q: Suppose a market in which demand equals Q=1200-10p and supply equals Q=20p a- What is the value of…

A: Consumers' surplus is a proportion of consumer government assistance and is characterized as the…

Q: Find and graph the Post Tax Consumer Surplus, Producer Surplus Tax Revenue, and Deadwelght Loss…

A: When a tax is imposed, the price for the consumers rises and the price for the sellers falls. The…

Q: (b) Calculate the consumer surplus before the tax. Answer: (c) Calculate the producer surplus before…

A: In a market, consumer Surplus and producer surplus provide information about the gain of market…

Q: Question 18 When a tax is imposed, consumer surplus and producer surplus are reallocated to tax…

A: A tax reduces both consumer and producer surplus.

Q: Question 4 Given: QD = 160 -5P %3D QS = -11 + 4P %3D In addition, the government imposed a $3.00 tax…

A: Taxation results in leftward shift of the supply curve. This results in increased prices and decline…

Q: In a market without taxes, consumer surplus is $100, and producer surplus is $200. After the…

A: In a market, when government intervenes, any gain or loss of the government will also be included in…

Q: Question 2 i) Given the following information QD =240-5p QS =p Where QD is the quantity…

A: Demand(D) curve shows a negative-relationship between price(p) and quantity(Q) i.e. when price(p)…