Suppose that a market is initially in equilibrium. The initial demand curve is P=90-Qc . The initial supply curve is P-2Qs. Suppose that the government imposes a $3 tax on this market. What is the dead-weight loss due to the tax? a) $1.50 b) $3 c) $1.00 )d) $2
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- Suppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the producers is: None of these $84 $18 $63 $21Suppose that there is a market demand and market supply curve given by P = 10 - 0.1Q and a market supply curve given by P = 2 + 0.001Q. a. What is the market equilibrium. b. What is the market equilibrium with a unit excise of $1 per unit. c. What ad valorem rate of tax raises the same revenue as the unit tax of $1The efficiency loss of imposing an excise tax is due to: a. Paying a higher price per unit. b. Producing and consuming fewer unit
- Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the buyer's price after tax and seller's price after taxThe market demand and supply functions for a good are: QD = 120 - 6P and QS = 20 + 4P. The equilibrium quantity and price are 60 and €10 respectively. Suppose the government imposes a tax of €2.00 per unit. The price that sellers will receive after the tax isA. €8B. €9C. €10.80D. €8.80A 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?
- Consider an ad-valorem tax on a good X. The Demand for good X is constant elasticity with elasticity -2. The Supply for good Y is constant elasticity with elasticity 3. Consider the same setting as for the previous question. When a tax of 1% of the price is imposed on good X, then equilibrium quantity of X exchanged declines by what percentage?The market for pizza is characterized by a downward sloping demand curve and an upward sloping supply curve. Suppose that the government forces each pizza house to pay a Php2 tax on each pizza sold. Illustrate the effect of this tax on the pizza market. Label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?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 per unit on sellers in this market. Determine: A) The deadweight loss of the tax B) The TOTAL surplus after tax
- 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€4.60Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of 512 per unit on sellers in this market. Determine the quantity and consumer surplus after taxThe 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. Complete the first table, given the information presented on the graph. In the second table, indicate which areas on the previous graph correspond to each concept. Check all that apply.