QUESTION 6 Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,800 units. The tax decreases consumer surplus by $5, decreases producer surplus by $3,400. The deadweight loss of the tax is O a. $1,200. Ob. $800.

Q: Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity…

A: A tax refers to a monetary obligation that individuals are bound to pay as producers or consumers to…

Q: Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first 3 sub…

Q: 1) (a) The demand and the supply functions are given by P= -6QD + 80 and P= 2Qs +10. Find extra pay…

A:

Q: The equilibrium price of a good is $15. Suppose the government introduces a tax on this good. In…

A: The money paid by the consumers and producers to the government of the nation when they consume or…

Q: 3. Illustrate and explain what would happen to the consumer surplus, producer surplus and deadweight…

A: The graph due to subsidy looks like: Due to subside supply curve shifts from S to S1 and the Price…

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: Suppose the coffee market in the US is given by the following equations for supply and demand: Qs =…

A:

Q: Suppose the government imposes a $10 per unit tax on a good (see diagram below) causing buyers to…

A: When the tax is imposed by the government it will be paid by both consumer and producer consumers…

Q: 1. The demand curve for cab rides is p = 5 – The supply curve is p = 2 for y < 2,500 and it becomes…

A: demand curve is given as P = 5 -  Y/1,000 Supply Curve is given as P = 2 for Y&lt;2,500 and then…

Q: The demand and supply equations for a product are: Qd= 300 – 6P and Qs= -40 + 6P. Determine the…

A: Market equilibrium is attained where the quantity demanded and the quantity supplied are equal.

Q: d.) Notice that the competitive equilibrium (Qº, Pª) and the point (Qª, P³) are both on the supply…

A: PLEASE FIND THE ANSWER BELOW.

Q: At the current market equilibrium, the price elasticity of supply for a certain good is much lower…

A: Given: Price elasticity of supply is lower than price elasticity of demand . Government imposes a…

Q: 8. Consider a competitive market where the market demand and the market sup- ply are given,…

A: QD = 500-2P QS = 2P

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: Price 24 20- A 18 Supply 16 B 14 C 12 F G H: 10- D 6- 4- K M Dand 2- 36 9 12 15 18 21 24 7 30 33 36…

A: From the given graph, we have Initial equilibrium price =12 and quantity =24 When government imposes…

Q: Suppose that demand for gasoline is 0.5 (Ed=0.5) and the supply of gasoline pizza is 1.25 (E,=…

A: Elasticity measures the responsiveness of quantity to changes in price level.

Q: Consumer and Producer surplus Stax P $500 $200 $120 $X $50 D 80 150 Q Assume an excise tax of $130…

A: The supply would shift after tax by the amount of tax i.e., by 130. Therefore the value of X…

Q: Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 40 60 Q Assume an excise tax that has…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: 1) a)Suppose the demand and supply curves for the market of wedding cakes is given as Qd= 50-5P Qs=…

A: The given question has many sub parts, so we are going to answer the first 3 parts for you. If you…

Q: 19. Suppose the demand for gasoline at Kingston Convenience Mart i q = 1000 - 400p, where q is…

A: Sales tax reduced producer surplus, consumer surplus and introduces dead weight loss in society.

Q: The market for pizza is characterized by a downward-sloping demand curve and an upward-sloping…

A: The competitive market is characterized by the presence of a large number of buyers, and sellers,…

Q: Suppose that the government imposes a price ceiling of $7. What is the outcome? O A surplus of 60…

A: Option (3).

Q: Suppose now that the government decides to increase the number of quotas available to 72 units, but…

A: Consumer Surplus: It refers to the level of welfare that consumers get, or it is the difference…

Q: Figure 8-1 PO P" Price J K L M 75 Supply Demand P N Quantity Refer to Figure 8-1. Suppose the…

A: Consumer Surplus is the area above the price line and below the demand curve. It is the difference…

Q: Suppose that the demand curve for wheat is Q° = 200 - 40p and the supply curve is o$ = 40p. The…

A: Hi! thanks for the question but as per the guidelines, we can answer up to three subparts at one…

Q: 3. Consider a free market with demand equal to Q = 1,200 – 10P and supply equal to Q = 20P. A.…

A: The supply depicts the producer willingness to supply the quantity at given prices during given…

Q: Leonard, Sheldon, Raj, and Howard each like science fiction moves. The price of a special boxed set…

A: Earlier when price = $50: Then consumer surplus is:- Leonard 70-50 20 Sheldon 65-50 15 Raj…

Q: 11 10 Supply Demand 20 40 60 80 100 120 140 lot 180 200 Refer to Figure 8-26. Suppose the government…

A: In the diagram given, it is clear that initially, the equilibrium point is the level of quantity…

Q: Suppose that the demand for a concert is represented by the following equation, where P is the price…

A: It is given that; 1. The equilibrium price can be calculated by equating demand and supply…

Q: Suppose the market for pizza is characterized by a downward sloping demand curve and an upward…

A: Downward sloping demand curve: The demand curve for a normal good is downward sloping depicting that…

Q: (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain.

A: a. The price elasticity of supply is the calculation of the change of the amount being supplied with…

Q: Figure 4-25 Price P: P2 Quantity Refer to Figure 4-25. Producer surplus before the tax was levied is…

A: A market is a place where the buyers and the sellers will interact with each other and the exchange…

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: Q Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of…

A: We show that  deadweight loss from the tax given below

Q: 28. In the long run, the incidence of a sales tax in an industry with constant returns to scale is…

A: Tax refers to the fee or charge that is imposed by the government on individuals or firms. There are…

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

A: Total surplus is the sum of consumer surplus and producer surplus

Q: Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. Price 24 22+ 20 18 Supply…

A: Tax in any economy creates the dead weight loss which is the sum of loss in consumer and producer…

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: Suppose demand is D and supply is S0 so that equilibrium price is $10. If an excise tax of $6 is…

A: Demand of a commodity is the desire backed by ability and willingness to pay for the commodity the…

Q: 1. The monthly demand function is pp = 26,000,000 -qand the supply function %3D before taxation is…

A: Inverse Demand: Pd = 26000000 - 1/3q2  Inverse Supply: Ps = 1000000+3750q

Q: Suppose that a market is described by the following supply and demand equations: Supply Q=3P; Demand…

A: Demand and Supply, in economics, is the connection between the portion of a thing that producers…

Q: The market demand and supply functions for toothpaste are: Q, = 10 – 2P and Q = 2P + 2 Suppose the…

A: QD = 10 - 2P  QS = 2P +2 At equilibrium; QD = QS =&gt; 10 -2P = 2P + 2 =&gt; 10 -2 = 2P + 2P =&gt; 8…

Q: What is the amount of the tax? $ 120- Stax S What is consumer surplus before the tax? $ 110- 100-…

A: According to the given graph, it can be seen that the market equilibrium in this market is at the…

Q: Suppose now that the government decides to increase the number of quotas available to 72 units, but…

A: First, derive the equilibrium price and quantity: At equilibrium: Qd = Qs 180 – 2P = -15 + P 180 +…