a. What is the equilibrium price? $b. What is the equilibrium quantity?c. What is the amount of the consumer surplus? $d. What is the amount of the producer surplus? $e. What is the amount of the total economic surplus? $PRETEJoenser504000 unitsBassen******ALTEwww GRAPH($) Price90 $90.008288 288 280706050403020100$50.001.02.0 3.06.05.04.0Surplus Measures7.0S8.09.0OffQuantity(thousands per week)0SETTINGSTax imposed on:Excise Tax (0-$20)DemandPerfectlyInelasticSupplyLessElasticCALCULATIONSNo TaxiWith TaxSupplyRelatively ElasticPerfectly ElasticDemandPrice Paid$50.00$50.000.00RelativelyElasticPerfectlyElasticQuantityReset4,0004,000Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 thousand units (this corresponds to avertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and there is no excise tax (set to $0). Use theSurplus Areas switch above the graph as needed.

Since, the price for producer is same for all quantities. The producer surplus is zero as producer…

What is the equilibrium price? $ What is the equilibrium quantity? What is the amount of the consumer surplus? $ d. What is the amount of the producer surplus? $ e. What is the amount of the total economic surplus? $ 50 4000 units

What is the equilibrium price? $ What is the equilibrium quantity? What is the amount of the consumer surplus? $ d. What is the amount of the producer surplus? $ e. What is the amount of the total economic surplus? $ 50 4000 units

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 11E: Federal excise taxes on gasoline vary widely across the developed world. The United States has the...

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Question

a. What is the equilibrium price? $
b. What is the equilibrium quantity?
c. What is the amount of the consumer surplus? $
d. What is the amount of the producer surplus? $
e. What is the amount of the total economic surplus? $
PRETE
Joens
er
50
4000 units
Bassen
******
ALTE
www

GRAPH
($) Price
90 $90.00
8288 288 2
80
70
60
50
40
30
20
10
0
$50.00
1.0
2.0 3.0
6.0
5.0
4.0
Surplus Measures
7.0
S
8.0
9.0
Off
Quantity
(thousands per week)
0
SETTINGS
Tax imposed on:
Excise Tax (0-$20)
Demand
Perfectly
Inelastic
Supply
Less
Elastic
CALCULATIONS
No Taxi
With Tax
Supply
Relatively Elastic
Perfectly Elastic
Demand
Price Paid
$50.00
$50.00
0.00
Relatively
Elastic
Perfectly
Elastic
Quantity
Reset
4,000
4,000
Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 thousand units (this corresponds to a
vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and there is no excise tax (set to $0). Use the
Surplus Areas switch above the graph as needed.

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