The demand and supply for a market are given by QD=25-P and QS = 3P. If a tax of $3/unit on output is imposed, what is the impact on the market price and consumer surplus?
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- Suppose the market demand for milk is Qd = 40 – 4P Where Qd is millions of gallons demanded and P is price per gallon. Suppose the market supply for milk is Qs = - 40/3 + 20/3P Suppose a tax of $1 per gallon of milk is imposed in this market. What is the new price paid by consumers and What is the quantity of milk sold? *Hint: It does not matter if the tax is collected from purchasers or sellers.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 $21qd = 240 - 3p, where q is the quantity demanded and p is the price. The supply curve is given by qs = p - 52.If a specific (or per-unit) tax of $20 is imposed on sellers, how much tax revenue does the government raise in this market? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- 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?Suppose demand and supply are given by: Q^d=14-0.5P and Q^s=0.25P-1. Determine the equilibrium quantity and price in this market. Show the equilibrium graphically. Suppose a $12 excise tax is imposed on the good.Determine new supply and the new equilibrium quantity and price. How much does producers' revenue change? How much tax revenue does the government earn?Suppose there is a market that has market demand characterized as X = 30P/3. Suppose further that market supply can be written as X = P/2 2. (A) Find the equilibrium price and quantity in this market. (B) If a unit tax of $16 is imposed on good X, what are the equilibrium price, quantity, and tax revenue in the market?(C) Suppose an ad valorem tax of 30 percent is imposed on good X. The after - tax demand equation would be X = 30 P/2. Now find the equilibrium price, quantity, and tax revenue in the market. (D) What can be said about the amount of tax revenue generated under each taxing scheme, and why?
- Consider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. 5. How much is the total surplus, with out sales tax? Use a number, 2 decimal values, no commas, no space, no signs. * 6. How much is the consumer surplus, with out sales tax? Use a number, 2 decimal values, no commas, no space, no signs. *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 quantity and consumer surplus after taxConsider a product that is fixed on supply QS=4 and the demand for the product is givenby QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer.a) What is the price paid by consumer and producers before the tax and after the tax?b) Find the total tax burden, burden on consumers and burden on producers.c) Suppose that supply schedule is changed to QS= 4+P. Redo the above questions and compare the results thanks in advance
- The 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. €8.80Tax incidence.Given:Demand (D): P = 100 – 1.5 Q Q* = 40 P*=40Supply (S): P = 20 + 0.5 Qa. Suppose a specific tax of P10 per unit is imposed on producers.i. What is the new supply function?ii. Solve for the new equilibrium quantity and price after the tax is imposed.b. How much will the consumer pay for the good (price)?c. How much will the producer sell for this good (price)?d. What is the amount of total tax revenues?e. Who bears the burden of tax? Why?f. Calculate the elasticity of demand and supply to validate your answer in letter e. Discuss youranswers.Q3: Consider the market for pineapples in a small island nation.Qd = 80 - 2P…………1And Qs = 20 + 3P………...2a. What is the market equilibrium price and quantity?b. Suppose the government imposes a per unit tax of $6 on consumers, find the new market equilibrium? ( show your answers)c. What is the tax share tolerated by each consumer and producer.