Suppose a tax of $0.25 is placed on the market depicted below. 0.90 085 0.80 0.75 0.70 085 080 0.55 0.50 0.45 0.40 50 100 150 200 250 300 350 400 What is the DWL from the tax? O a. 8.75 O b.15 O C. 10 O d. 12.50

Q: Suppose that the government subsidizes a good: for each unit of the good sold, the government pays…

A: The tax is the unilateral payment from the people to the government. Tax is the main source of…

Q: Figure #2 price 10 1Daffer tns 10 20 30 40 50 60 70 Refer to Figure#2. Respectively, what are the…

A: The burden of taxes are shared between the buyers and sellers depending on the elasticity of demand…

Q: Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is O a. $5. O…

A: A dimnishing in demand and an expansion in supply will cause a fall in balance cost, however the…

Q: Suppose the market for soft drinks is given by: Demand: P=181-1.7Q Supply:P=1.30 The government…

A: In a free market the price is determined by the forces of demand and supply. The government can…

Q: A market is described by the following supply and demand curves, respectively: QS=P QD=20-P where QS…

A: Initial price when there was no tax imposed by government: QS=QDP=20-P2P=20P=10

Q: Figure 4 20 arice 18 16 14 12 10 6. 2 Daterte 10 20 30 40 50 60 70 80 90 100 110 120 130 quantity…

A: Deadweight loss: A deadweight loss occurs when supply and demand are out of balance, resulting in a…

Q: Suppose a tax of $0.25 is placed on the market depicted below. 0.90 085 0.80 0.75 0.70 0.65 0.60…

A: Consumer surplus: Consumer surplus refers to the welfare that people gain from consuming goods and…

Q: 24 EX 16 price 10 b. $16. 70 O c. $6. O d. $24. 100 D Refer to Figure 6-18. The effective price that…

A: Equilibrium in the market is reached at the intersection of demand and supply curves

Q: Suppose the market for aluminum is given by the following diagram. Suppose that the government…

A: In the above diagram, the shaded region is DWL due to the tax is imposed of $20…

Q: QUESTION 35 In the figure below, the amount of the tax per unit is: S+ tax 4. 3. 3. 6. Quantity…

A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…

Q: Price S1 20 18 16 14 SO 10 Demand 300 400 500 1000 Quantity Suppose that the market in the graph…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: 08 R S4 2. L %23 $. MacBook Pro « Previous O $1,950. O $975. O $1,800. Refer to the above figure. If…

A: Producer surplus is an area above supply curve and below given price where supply curve is an upward…

Q: The above figure shows the market for blouses. The government decides to impose the sales tax on…

A: $10,000 (Option B)

Q: 29. The government is thinking about increasing the gasoline tax to promote conservation. The tax…

A: When tax is imposed on the good, its price increases. Increase in price will decrease the quantity…

Q: QUESTION 31 11.00 10,00 9.00 Supply 8.00 7.00 6.00 5.00 4.00 3.00 Demand 2.00 1.00 300 600 900 1200…

A: Initially the equilibrium price and quantity is given as  P = 5 Q = 900

Q: Suppose that a market is initially in equilibrium. The initial demand curve is P=90-Q. The initial…

A: Given,

Q: The figure below shows a hypothetical market for cigarettes. Price $16.00 $15.00 $14.00 $13,00…

A: The tax creates a wedge between the what the buyers pays for the goods and services and what the…

Q: Suppose that the supply and demand for widgets is given by the following equations: QD = 36 – 3P =…

A: Hello. Thank you for the question. Since there are multiple questions posted here, only the first…

Q: Danny $150.00 Tom S135.00 Bob $120.00 Mayank S100.00 Refer to Table. If the above are the four…

A: question 8 consumers buys the product only when price is less than or equals to willingness to pay…

Q: 3.30 3.00 Supply 2.70 2.40 2.10 1.80 1.50 1.20 0.90 Demand 0.60 0.30 50 100 150 200 250 300 350 400…

A: From the graph, prior to tax, the market-clearing quantity is 150 units and the corresponding price…

Q: Supply of construction workers in a small town is given by Qs = 4W - 20, and demand for construction…

A: At equilibrium demand for labour and supply of labour are equal at certain level of wage rate .  And…

Q: Which of the following statements is correct? Choose an answer: O 1. Regardless of which side of the…

A: The markets are operated by the working of the buyers, and sellers of goods, services, assets,…

Q: Price (dollars per gallon) Supply, S, Tax $3.80 3.40 3.20 Demand 30 35 Quantity (billions of gallons…

A: 1) The wedge between the supply curves before and after tax would be the tax amount.  This is given…

Q: Consider a market in which the demand curve is P = 12 -Q and the supply curve is P = 2 + Q. Suppose…

A: Demand curve P = 12 -Q Supply curve P = 2 + Q At equilibrium point, demand = supply => 12 -Q = 2…

Q: Which of the following would most likely lead to the largest deadweight loss (all else equal)?…

A: A deadweight loss can be considered as the cost to society due to improper allocation of resources.…

Q: Table: The market for taxi rides Fare (per ride) $7.50 7.00 IS 6.50 6.00 5.50 5.00 4.50 4.00 3.50…

A: In the given diagram, equilibrium price and quantity of rides are achieved when the demand curve…

Q: The government places a price ceiling in this market. Assume that the price ceiling is set such that…

A: Consumer surplus is the area below the demand curve and above the price.

Q: Demand: Q° =1080-7P Supply: Q =-120 +3P opose now that government imposes $60 tax per unit of output…

A:

Q: Suppose demand for comedy show tickets is given by P = 50 – Q and the supply for comedy show tickets…

A: Before Tax Inverse Demand: P=50-Q Demand: Qd=50-P Inverse Supply: P=10+4Q Supply : Qs=(P-10)/4…

Q: 5 S- MSC 3 1 D- MSB 10 20 30 40 50 60 Quantity (units per day) In the above figure, at the…

A: Consumer surplus is the difference between what consumer is willing to pay for all the units…

Q: QUESTION 12 Figure 6-25 1arice 10 is 6 3. D Datertak 10 20 30 40 s0 60 70 80 quantity Refer to…

A:

Q: QUESTION 8 Figure 14 12 10 8 6 4- 2- 10 20 30 40 50 60 70 Refer to Figure. If the government imposed…

A: In case of per unit of tax the burden of tax will fall equally on both the consumers and the buyers.…

Q: Which of the following best describes why the government is not able to decide whether it will be…

A: Equilibrium price and quantity are determined where market demand is equal to market supply.…

Q: Figure 6-8 5 10 iS 20 25 30 3s 40 45 50 ss o 6s TO 15 s0 RS ity 6. Refer to Figure 6-8. When a…

A: Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below…

Q: QUESTION 2 Andrea is willing to pay a maximum of $1000 for a 50 inches television. She was able to…

A: Consumer surplus (CS) = Maximum willingness to pay (MWTP) - Actual price paid (P)

Q: Suppose demand is represented by P = 100-2Q, and supply is represented by P = 5+ 3Q. If the…

A: Tax of $5 creates the loss in the total surplus because due to tax market shrinks and creates the…

Q: The Embarcadero Salon and Lin's Hairplace both sell haircuts. The market price of one haircut is…

A: We know that equilibrium is achieved when demand for goods and supply for goods are equal. And…

Q: Imagine that the demand curve for beer is given by P=9-Q and supply for beer is given by P=1+Q. What…

A: At equilibrium where demand for goods and services are equal to supply for it at certain price level…

Q: The graph shows the market for books when books are not taxed. Price (dollars per book) 12- Now the…

A: Tax is the primary source for the government for meeting different projects.

Q: For Frisbees, the supply curve is the typical upward-sloping straight line, and the demand curve is…

A: In the market, equilibrium occurs at the intersection point of market demand and market supply…

Q: The market demand and supply function for Good A are given by: Qp = 200 - 5P %3D Qs = 100 + 3P %3D…

A: Seller receives a price of $10 then Qs=100+3*10=130 units which is the after-tax equilibrium…

Q: Consider that the market for oranges where the demand is described by the equation P = 22 - 0.15Q…

A: Given, P= 22-0.15Q P=2+0.1Q

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: Dollars F $15- e $10- $6 D $2 2,000 1,000 1,200 Quantity per period Use the graph above. If the…

A: Equilibrium is achieved at the output level where Qs equals Qd.  Thus Q*= 2000 units and P*= $ 10

Q: $80 $70 $60 $ 50 $ 40 $30 $ 20 $ 10 O(Widgets) 10 20 30 40 so co 70 00 90 Figure 9.4 Refer to Figure…

A: A dead weight loss is a cost to society occurs due to market inefficiency, that happens when supply…

Q: Price (dollars per gallon) S2 $5.50 3.50 2.50 Quantity (millions of gallons per month) 30 40 45…

A: Market equilibrium is achieved at demand and supply curve interaction . And when tax is placed price…

Q: 3.30 3.00 Supply 2.70 2.40 2.10 1.80 1.50 1.20 0.90 Demand 0.60 0.30 50 100 150 200 250 300 350 400…

A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…