Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplus shampoo, what is the maximum possible floor price that could be imposed? Price 3
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- In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?Give typing answer with explanation and conclusion In an effort to curb planetary obesity, authorities levy a tax of $20 per unit of lunar candy. How much of this tax is borne by the sellers? That is, by how much does the seller’s price change? demand - q = 600 − 2p supply - q = 2p − 400 Equilibrium price - 250 Equilibrium Quantity- 100 Use the equation Ps= Pd+ Tax to solve ANSWER IS 10Consider the following policies, each of which is aimed at reducing violent crime by reducing the use of guns. Illustrate by demand and supply diagrams followed with an explanation the effect of each of these proposed policies. For each question, show the price paid by consumers, the price received by producers, and the quantity of gunssold, the difference between the price paid by consumers and the price received by producers, has the number of guns sold increased or decreased] a. A tax on gun buyers b. A tax on gun sellers c. A binding price floor on guns d. A tax on gun ammunition
- The following table is to be used for answering questions 9-12. Price per dozen Dozens of doughnuts Dozens of doughnuts demanded supplied $5.00 12,000 24,000 4.25 15,000 21,000 3.50 18,000 18,000 2.75 21,000 15,000 2.00 25,000 10,000 9. What is the equilibrium price? What is the equilibrium quantity? 10. Suppose that a tax of $1.50 per dozen is levied by the government on producers. What is the new equilibrium quantity? What is the new equilibrium price? 11. Suppose, instead, that a…Referring to Figure 8, assume the government does not fix the price of gasoline. What would happen to the price and quantity if demand also decreased instead of staying the same? a. The price would increase above P2, and the quantity would increase above Q2. b. The price would increase above P2, and the quantity would decrease below Q2. c. The price would decrease below P2, and the quantity would decrease below Q2. d. The price would decrease below P2, and the quantity would increase above Q2.Consider the following policies, each of which is aimed at reducing violent crime by reducing the use of guns. Illustrate by demand and supply diagrams followed with an explanation the effect of each of these proposed policies. [Hint: For each question, show the price paid by consumers, the price received by producers, and the quantity of gunssold, the difference between the price paid by consumers and the price received by producers, has the number of guns sold increased or decreased]a. A tax on gun buyers b. A tax on gun sellers
- Quanity demand =40-P Quanity supply =P-4 How much is total consumer surplus ar the equilibrium price in this market?Suppose the demand and supply curves are described byMC = 1.11 + 0.89QWTP = 8.92 - 0.83QSuppose the price is 6.37.A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.If the government places a tax of $500 on luxury cars, what happens in the market? Please assume demand and supply that are "normal" i.e. not completely elastic and not completely inelastic. Demand is downward sloping and supply upward sloping :) Question 7 options: The price goes up by less than $500, and quantity sold goes up The price goes up by less than $500, and quantity sold goes down The price goes up by more than $500, and quantity sold goes down The price goes up by more than $500, and quantity sold goes up
- The equilibrium price of a good is $13$13. Suppose the government introduces a tax on this good. In this case, the price paid by consumers is 1.51.5 times more than the equilibrium price, and the price received by producers is 1.31.3 times less than the equilibrium price. Calculate the amount of tax per good. Enter your answer in the box below and round to two decimal places if necessary.problem 1. Think about the market for parking spaces in downtown LA. There is little flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in the city such as taking the train or parking just outside the city and taking a bus. a. Please draw the market for parking spaces in downtown LA. b. If a tax is applied on parking spaces, what happens to the quantity? c. Who pays most of the tax burden? problem 2 Suppose the California legislature passed a sweeping law to lower the number of regulations for building homes such as increasing the parking requirements and setback requirements. Suppose there is a housing tax. a. What is the effect of this law on the PES for housing? b. What effect would this law have on the tax burden for buyers?4.Which of the following will cause the supply of a product to decrease? a) governent subsidy for the product b)an increase in consumer' income c) a decrease in the price of the product d)an increase in the excise tax on the product
