Suppose that a government imposes a tax on a product of £9.3 per unit. As a result of this tax, the equilibrium quantity of the good decreases by 18.7 units and the equilibrium price increases by 80p. What is the dead weight loss induced by this tax in £?
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A: At equilibrium, Demand and supply curve intersect each other. Hence, at equilibrium, Qd=Qs
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A: QD= 240-5P ........... demand function Qs = P ............. supply function
Q: Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P…
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Q: Question 2a - Part 1 Given the following information Qp = 240 - 5P Qs = P where Qp is the quantity…
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Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…
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A: Budget = Tax revenue - Government expenditure +20 = tax revenue -324 Tax revenue = 344
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Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…
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Q: Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the…
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Q: Given the following information Qd= 240 – 5p Qs = P Where Qd is the quantity demanded, Qs is…
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Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…
A: ANS Given; QD=240-5PQS=P At equilibrium QD = QS ∴240-5P=P⇒6P=240⇒P=2406=40 Putting P = 40 in the…
Q: Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the…
A: Qd = 240 - 5P Qs = P These equations can be rewritten as Q = 240 - 5P 5P = 240 - Q P = 48 - 0.2Q…
Q: Question 2a - Part 2 Given the following information Qp = 240 - 5P Qs = P %3D where Qp is the…
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Q: Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity demanded, Qs is the…
A: Given QD = 240 - 5P QS = P Before Tax At Equilibrium QD =QS240 - 5P = P240 = P + 5P240 = 6PP =…
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Q: Equation: Qd (p) = 18-p and Qs (p) = 2p Suppose the goverment imposes a $3 per-unit tax (T =3) on…
A: Qd=18-pQs=2pNow, the equilibriumy price is when:Qd=Qs18-p=2p18=2p+p3p=18p=183p=6Now, substituting…
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- After the excise tax is imposed, what is the new equilibrium quantity of sofas? d. What is the total amount of revenue collected by the government from the excise tax on sofas?The gasoline demand equation is 100 -20P and the gasoline supply one is 48P. I am trying to figure out if the government levies a Pigouvian tax of $50/ton CO2, what is the effective tax per gallon of gas? Each gallon of gasoline releases 20 lbs (or 0.009 tons) of CO2 when combusted.Suppose the supply of a good is given by the equation QS=600P−1,200 , and the demand for the good is given by the equation QD=1,600−200P , where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $2.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows: 1. The equilibrium quantity produced 2. The equilibrium price consumers pay for the good 3. The price received by sellers Before Tax After Tax Equilibrium Quantity (Millions of units) Equilibrium Price per Unit Paid by Consumers Price per Unit Received by Sellers Given the information you calculated in the preceding table, the tax incidence on consumers is per unit of the good, and the tax incidence on producers is per unit of the good. The government receives in tax revenue from levying an excise tax of $2.00 per unit on this good. True…
- Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose the government decides to impose tax of $12 per unit on sellers in the market. Determine: Tax revenue _____________.Equation: Qd (p) = 18-p and Qs (p) = 2p Suppose the goverment imposes a $3 per-unit tax (T =3) on each unit of the good being produced. That is, the firms have to pay $3 to the government each time they produce and sell a unit of output . a.) What will be the new equilibrium quantity?Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. What is the Equilibrium quantity before tax
- Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the Buyers price after tax.Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the quantity after tax.Given the following information Qd= 240 – 5p Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price.Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine the buyers price after tax
- Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine the Demand and Supply equation after the tax.Please help me to ensuere that my answers are correct. Complete all of the blanks. What is the pre-tax equilibrium price Using the demand schedule, what is the elasticity of demand (using the traditional method) if the price had changed the equilibrium price to $60 ? Is it (elastic, inelastic, unit elastic, perfectly elastic, perfectly inelastic): Suppose a $10 tax will be imposed on the production of item A, who will carry more of the burden? (consumer, supplier, neither, equal) The consumer surplus after taxes is The total surplus after taxes is 3 : The total tax revenue is The tax has now been removed because people thought it was unfair. Will total surplus increase, decrease, or stay the same? ]By what amount if any? [ The government decides to impose a price floor at $20. After their action, what is the market price? If there is a shortage or surplus, how much is it? (0 if there isn't one) They then repeal the price floor and create a price ceiling at $40. What is the market price…Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12.00 per unit on sellers in this market. A) What is the supply equation after tax? B) What is the demand equation after tax?