Suppose that a certain product has the following demand and supply functions. Demand: p=0.04g + 95 Supply: p=0.04g + 20 If a $5 tax per item is levied, find the market equilibrium point after the tax. (q, p) = * ) Need Help? Read It
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- The market demand and supply functions for a good are: QD = 260 - 50P and QS = -40 + 10P. The equilibrium quantity and price are 10 and €5 respectively.Suppose the government imposes a tax of €0.60 per unit. The price paid by consumers after the tax will be €5.10€5€5.60€4.60Suppose the following demand and supply function of a commodity. 15 Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P Find out the equilibrium price and quantity before tax.Suppose demand is D and supply is S0 so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold?Equilibrium price paid by consumers: $ Price received by producers: $ Number of units sold:
- Demand for apples is given by the function P=50-4q while supply is given by P=10+q. If a per-unit tax of $15 is placed on apples, What is new price after tax?The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes.The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.
- The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.In a competitive market the equilibrium price, P, and quantity, Q, are found by setting QS = QD = Q in the supply and demand equations: P=aQS +b(a>0,b>0) P=−cQD +d(c>0,d>0) A) If the government levies an excise tax, t, per unit, show that: Q=d-b-t/a+c B)Deduce that the government’s tax revenue, T = tQ, is maximised by takingt=d-b/2A competitive market with the following supply and demand curves is in equilibrium. Supply: p^s=20+2Q, Demand: p^d=110−Q --> Q^e=30 and p^e=$80 If the government imposes a tax of $15 per unit on the sellers in this market, what share of the tax burden will the buyers bear?
- The demand function for beef is Qd = 100 – 3P and supply function for beef is Qs = 10 +2P. Price elasticity of demand is – 0.1 and price elasticity of supply is 0.02. ii. Calculate new price of beef in the market when government introduces a specific tax of N$0.25 per kg.The demand for a product is given by p + 2q = 250 and the supply by p - 4q = 100. a) Find equilibrium values. b) If a flat-rate tax is imposed on each unit sold, find the optimal tax and the maximum possible tax revenue. Verify that tax revenue is maximum.Suppose the demand for a product is given by P = 100 – 2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, what proportion of the tax will be paid by the buyers?. Group of answer choices 75% 40% 60% None of these 25%
