Suppose the market for grass seed can be expressed as: Demand: QD = 140 - p and Supply: Q> = 20 + 3p. If the government collects a $4 specific tax from sellers, (i) The price consumers will pay before the tax is $ (ii) The price consumers will pay after the tax is $ (iii) Of the $4 tax per unit, the sellers' tax burden is $

Suppose the market for grass seed can be expressed as: Demand: QD = 140 - p and Supply: Q> = 20 + 3p. If the government collects a $4 specific tax from sellers, (i) The price consumers will pay before the tax is $ (ii) The price consumers will pay after the tax is $ (iii) Of the $4 tax per unit, the sellers' tax burden is $

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.10P

See similar textbooks

Similar questions

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%
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€4.60
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 $21
Consider a market where the demand and supply for the good are described by the following equations: QD= 225-3P and QS=-22.5 +1.5P If there is a $3 per unit tax on the good, what is the revenue from the tax?
In a competitive market in which P = 100 − 2Q is the inverse demand for fuel and P = 10 + Q is the inverse supply of fuel. Calculations are preferred, but you may use a graph for partial Without a tax, what is the market-clearing price and output, P and Q? What is the consumer surplus and producer surplus (with no tax) If a tax on fuel is set at $15, how much fuel will be purchased? You can assume that the buyers pay the tax (but it doesn’t matter). What is the deadweight loss of the tax? Thanks!
given the following information QD=240-5p and QS=P, where QD is the quantity demanded, and 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 the market. Determine: Total surplus after tax
Suppose the demand function for cigarettes is given by Qd=80-20p and the supply is by Qs=10p-10. Suppose the government introduce a specific tax of t=1 to be levied from the produces. 1. Obtain the new supply Curve 2. Determine the new equilibrium quantity and price 3.compute the government revenue 4. Compute the incidence (burden) on the consumer 5. Compute the incidence (burden)on producers 6. Compute the dead weigh loss 7. Draw a diagram with all your analysis
When the price is 10 TL for each pack of cookies, the supply is 250 thousand and the demand is 120 thousand boxes.When the price is 9,5 TL for each pack of cookies, the supply is 200 thousand and the demand is 240 thousand boxes. Since the price-demand and supply-demand equations are linear; Find and interpret the market equilibrium point after-tax if the consumer is taxed at a rate of 0,75 TL per product.
Assume that the demand function for a commodity is given by Qd = 3 – 0.1P and that the supply function is given by Qs = 1 + 0.05P, where P is the price, Qd is the quantity demanded and Qs is the quantity supplied. Suppose the government levies a tax of t cedis per unit sold. If the market is in equilibrium and the tax is increased, show how the price, quantity and tax revenue will change once the new equilibrium has been attained.
Suppose 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. Find consumer and producer surplus before tax. Determine government revenue and dead weight loss after tax.
The demand and supply functions in the market for Dentemprika yam are given as: Q =300-50P and 100=150P-Q respectively. a) present graphically the result of the above question b) Determine which economic agent has relatively higher welfare or surplus c) Given the elasticities of demand and supply at the equilibrium if the government imposes a per unit tax on the producer who will bear the larger share of the tax?
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?