xyz has immense demand function p=30-Q and marginal cost of MC=Q . suppose the government introduces a tax = 3.5@ the efficiency level of production the equilibrium after tax the tax burden the excess tax burden
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xyz has immense
- the efficiency level of production
- the equilibrium after tax
- the tax burden
- the excess tax burden
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Solved in 5 steps
- Assume that the Demand Function is P = 16250 - 6Q and Supply Function is P = 2000 + 3Q, a tax of P1200.00 is imposed by the government to the producers. (Graph items 1-5) 1. Whatis the Ps? 2. Whatis the Pb? 3. Compute for the DWL. 4. How much taxc is paid by the Suppliers? 5.How much tax is paid by the consumers?Suppose a firm has demand and supply are given by: Qd = 17− 2Px and Q s = 4Px − 1 c. How much tax revenue does the government earn with the $12 tax when the new equilibrium quantity is 2 units after tax .Assume that the Demand Function is P = 16250 - 6Q and Supply Function is P = 2000 + 3Q, a tax of P1200.00 is imposed by the government to the producers. (Graph items 1-2) 1. How much taxc is paid by the Suppliers? 2.How much tax is paid by the consumers?
- Suppose the government uses the following equation to compute a family’s tax liability: Taxes OwedTaxes Owed = = (1/3 of Income)−$8,0001/3 of Income−$8,000 For each of the incomes listed in the following table, determine the tax liability for a family with that income level. (Note: If a family receives a subsidy because its income is too low, be sure to indicate the tax liability as negative.) Income Tax Liability (Dollars per year) (Dollars per year) 0 12,000 24,000 60,000 True or False: If a family is currently receiving a tax credit, the credit is reduced by $0.25 for each additional dollar earned until the family reaches an income of $24,000 and the credit becomes $0. True FalseConsider 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. What is the incidence of the tax? Provide a fraction that shows the ratio of the tax burden that falls on the supply side relative to the demand side.In the absence of taxation a consumer has the budget constraint p1x1 + p2x2 - w = 0. Show that an ad valorem tax levied at rate t on both commodities and on labor raises no revenue. Explain this fact.
- (Answer the f) Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 + 2P. If the government then increases the seller's tax on the product amount of IDR 20/ unit of goods, what is the price and quantity of goods new balance Calculate the tax burden borne by consumers & manufacturers, as well governement tax revenue F. Calculate the amount of subsidy received by consumers and manufacturers , as well subsidies issued by the governmentThe demand function D(p) = 200 - 4p and supply function is S(p)= 6p Find the equilibrium price and quantity If government collect $10 unit tax from each product, find the equilibrium demand and supply prices. How much tax revenue is collected? What is the deadweight loss amount as a result of taxation?Consider 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
- Tax 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.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?Q2: Suppose the demand function isp = 50 - 2q………………1and the supply function isp = 10 + 3q…………….2a) Find the market clearing price and quantity (equilibrium point)b) Sketch a graphc) Suppose the government imposes a per unit tax of $5 on producers, what would be the effect of this tax on market clearing price and quantity? ( show your answers)d) Find the consumer and producer tax burden.e) Calculate the tax revenue that the government received.
