What happens to consumer and producer surpluswhen the sale of a good is taxed? How does thechange in consumer and producer surplus compareto the tax revenue? Explain

Q: SAP The demand curve for a product is p = 113 - q 2 and the supply curve is given by p = (q+1)…

A: Demand : p = 113 - q2 Supply : p = (q+1)2 Finding out equilibrium: Demand=Supply 113 - q2=(q+1)2 113…

Q: Discuss the effects of indirect taxes on producers. min 200 word

A: Indirect taxes are the taxes that are not directly paid by consumers. These taxes are added in the…

Q: Suppose demand is given by the equation Pp = 100 – 2Qp and supply is given by the equation PS = 50 +…

A: Equilibrium quantityPD=PS100-2Q=50+3Q100-50=3Q+2Q5Q=50Q=505Q=10

Q: b. Who pays more of the tax incidence? O Consumers and producers split the tax. O Producers, because…

A: The graph is showing demand and supply of tanning session when government imposes excise tax of $15…

Q: Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the…

A: If a tax is imposed on the buyer of a product, the tax burden is shared by both buyers and sellers.…

Q: Suppose that in the market for toys, the price of a toy is $24, the quantity sold is 96, the demand…

A: When a tax is introduced, the amount that is paid by consumers and producers of that tax is called…

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change…

A: The consumer surplus is the area below the demand curve and above the price. Producer Surplus is the…

Q: Ans Question 10 Explain how the introduction of the commodity tax T formally paid by market demand…

A: Tax occurrence is the impact a specific tax hosts on the two gatherings of an exchange; the producer…

Q: f the government quadruples the amount of tax on gasoline, can you be sure that revenue fromg…

A: Tax: refers to the unilateral payment towards the government made by the public. Deadweight loss:…

Q: Calculate the consumer surplus before tax. b)Calculate the produce surplus before the tax

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: S8.Compute:(a) Market Gains (MG) before and after the tax;(b) Governmental Revenue (GR);(c) Economic…

A: deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…

Q: Taxation Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: Tax results in leftward shift of the supply curve.It results in increased price and reduction in…

Q: Assume the government imposes a $2.00 tax on a good that costs $5.00. If the price buyers pay…

A: Burden of tax refers to those who essentially end up paying the tax.

Q: Suppose the government removes a tax on buyers ofa good and levies a tax of the same size on sellers…

A: Tax is always a subject to the consumer, it means if tax is levied on the consumer then it directly…

Q: Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 40 60 Q Assume an excise tax that has…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: Q4 Suppose the demand and supply curves given in Figure 2 below shows the market of smart phones.…

A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Suppose the demand for cigarettes is Q = 15 - 0.5Pand the supply of cigarettes is Q = P - 3, where P…

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: progressive income tax has a greater deadweight loss compared to a proportional incone tax ?…

A: Progressive income tax is a situation when the level of taxes increases with the increase in income…

Q: Refer to the Figure 5.7. An excise tax introduces a wedge between the price paid by consumers (Pc)…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1.Given the following information Qd = 240 – 5p  Qs= P Where  Qd is the quantity demanded, Qs is…

A: Consumer surplus is the difference between the price a consumer is willing to pay and the actual…

Q: Fuppose the government implements a $5 dollar per unit sales tax. i. Calculate the new quantity and…

A: Since the Part d is containing 4 subparts so as per answering guidlines, only d part will be solved.…

Q: True or false (explain why): To minimize the burden of taxation, it is better to levy large taxes on…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Assume an excise tax of $130 per-unit tax has resulted in a decrease in Supply as shown on the graph…

A: Equilibrium quantity and price is determined where market demand is equal to market supply.…

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the…

A: Consumer and Producer surplus The consumer surplus  basically refers to the difference between what…

Q: What kinds of markets should a government tax according to the Ramsey taxation result? What is the…

A: Ramsey taxation is about the optimal taxation system that maximise the tax revenue with given…

Q: i. Find the equilibrium price and quantity demanded and supplied before the tax. ii. Which of the…

A: We will answer only the first three parts, as no question number is mentioned here.

Q: Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of…

A: An excise tax is the tax levied on the production of goods. We proceed further according to the…

Q: In the market for therbligs, the supply curve is Ps=$10+$0.05Qs  and the market demand curve is…

A: Demand Equation: P=20-0.10Qd Supply equation : P=10+0.05Qs Equilibrium:  0-0.10Qd=10+0.05Qs Demand…

Q: Using a hypothetical demand and supply equations explain what would happen if government imposes an…

A: An Indirect tax is an assessment/tax imposed by a governing body, indirectly from the consumer via…

Q: Draw a supply-and-demand diagram of the market for liquor without the tax. Show the price paid by…

A: Answer - Thank you for submitting the questions.But, we are authorized to solve one question at a…

Q: Illustrate, with the use of an appropriate figure, what the deadweight loss from the imposition of a…

A: Answer: Deadweight loss is caused due to various kinds of market interventions, it includes…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…

A: The equilibrium is at S=D before taxwhereP=$10 and Q=12 units

Q: What is retrospective tax?

A: Tax is a compulsory payment imposed on the individuals, household and firms. Taxes are generally…

Q: The market demand for steel is QD = 240–6P and the market supply for steel is QS= –60 +4P.…

A: In a competitive market, there exists a large number of buyers and sellers of the good in the…

Q: Please assist with the following questions 1. Calculate the  (i)  consumer surplus BREFORE THE TAX…

A: 1. Consumer surplus before tax = 12×18-10×12=48Producer surplus before tax = 12×10-3×12=42

Q: Submit AB (Figure: Effects of Excise Tax) Based on the graph, after the excise tax is placed on the…

A: When the excise tax is imposed, the supply curve shifts upward. Price that consumers pay is C and…

Q: 3. Use the graph and the inverse demand equation (P=50 - .5Q), inverse supply equation (P=0.333Q)…

A: The inverse demand equation is given as: P=50 - .5Q Where P is the price of the good and Q is the…

Q: Find and graph the Post Tax Consumer Surplus, Producer Surplus Tax Revenue, and Deadwelght Loss…

A: When a tax is imposed, the price for the consumers rises and the price for the sellers falls. The…

Q: QUESTION 23 Refer to the graph below for a market. Price 48 Supply 44- 40 + 36 + 32 28 + 24 20 + 16…

A: consumer surplus is the area above the price and below the demand curve producer surplus is the area…

Q: Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer…

A: The graph shows the market for beer without tax. The equilibrium price is P* and the equilibrium…

Q: Market for

A: Tax of 6/unit will raise the supply curve by 6.

Q: 2. Taxes and welfare Consider the market for designer purses. The following graph shows the demand…

A: At equilibrium, demand is equal to supply. Consumer surplus is the difference between the…

Q: What is the amount of the tax? $ 120- Stax S What is consumer surplus before the tax? $ 110- 100-…

A: According to the given graph, it can be seen that the market equilibrium in this market is at the…

Q: Why is the burden of a tax to taxpayers greater thanthe revenue received by the government?

A: Tax Burden is a proportion of the taxation rate forced by government. It incorporates direct…

Q: How do the elasticities of supply and demand affectthe deadweight loss of a tax? Why do they have…

A: Tax is a kind of fees that is leived by the government inorder to collect revenue for the people.…

Q: Suppose that your state raises its sales tax from5 percent to 6 percent The state revenue…

A: Given: Sale increased from 5% to 6%