Suppose the government imposes a specific tax of t=2 per unit. a. How do the equilibrium price and quantity change? (Round quantities to the nearest integer, round prices to the nearest penny, and use these rounded values in the subsequer The equilibrium quantity without the specific tax is and the price without the specific tax is $ The equilibrium quantity with the specific tax is the price with the specific tax that consumers pay is $. and the price that sellers receive is b. What effect does this tax have on government revenue and social welfare? Government revenue (T) is S (round your answer to the nearest penny). The deadweight loss (DWL) is $ (round your answer to the nearest penny and enter it as a positive number).
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- Suppose that you are the vice president of operations of a manufacturing firm that sells an industrial lubricant in a competitive market. Further suppose that your economist gives you the following supply and demand functions: Demand: = 50 – 2P Supply: Q° = - 10 +P. What is the consumer surplus in this market? Consumer surplus is $ (Enter your response rounded to two decimal places.) What is the producer surplus? Producer surplus is $ (Enter your response rounded to two decimal places.)Consider in perfectly competitive market the following demand and supply equations for sugar:Qd =1000-1000p where Q d is quantity demanded and Qs is quantity supplied. Qs=800+ 1000p Where P is the price of sugar per pound and Q is thousands of pounds of sugar. (a) Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. What would be the relationship between the quantity supplied and quantity demand for sugar?(b) Identify market problem specifically at prices 0.2 per pound and what will be scientific recommendation you suggest to solve the identified market problem?Consider a perfectly competitive market in which the direct market demand curve is Q(P)=140-10P and the direct market supply curve is Q(P) = 10P Suppose the government imposes a specific tax of t= 1 per unit. Note: I did not specify who the tax is applied to because it does not impact the outcome. You may apply the tax to either consumers or producers. A. How do the equilibrium price and quantity change? (Round your answers to two decimal places and use the rounded values in Par B.) The equilibrium quantity without the specific tax is and the price without the specific tax is $. The equilibrium quantity with the specific tax is sellers receive is. the price with the specific tax that consumers pay is $, and the price that B. What effect does this tax have on government revenue and social welfare? Government revenue (G) is $ (round your answer to two decimal places). The deadweight loss (DWL) is $ (round your answer to two decimal places and enter it as a positive number)
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- The market demand function for corn is Qd = 19 - 5P The market supply function is QS = 5P - 4 both quantities measured in billions of bushels per year. Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places. a. What is consumer surplus at the competitive market equilibrium? b. What is producer surplus at the competitive market equilibrium? c. What is aggregate surplus at this equilibrium?Assume that the market for soap in Cintra is perfectly competitive. Demand is downward sloping and supply is upward sloping. All consumers and firms are identical. a) The government introduces a requirement that firms must make soap from biodegradable material only. Firms now need to use more costly ingredients to produce soap. What is the predicted impact of this restriction on market price and quantity in the Cintra soap market? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram. b) Data from the 2021 flu season shows a decrease in both market price and market quantity in the Cintra soap market. Over this same period, the price of hand sanitizer fell. Claim: The change in the price of hand sanitizer could explain the changes in the soap market. Agree, Disagree or It depends? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram.. c) Flu season has started. More…The market demand function for corn is Q¹ = 30 - 2P. The market supply function is Q = 5P-2.5, both measured in billions of bushels per year. Suppose the government imposes a $8.10 tax per bushel. What will be the effects on aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax? Instructions: Round your quantities to the nearest whole number. Round prices, surpluses and deadweight losses to 2 decimal places. a. What are the initial equilibrium effects? Complete the table below. Initial equilibrium price Initial equilibrium quantity Initial equilibrium consumer surplus Initial equilibrium producer surplus After-tax equilibrium price After-tax equilibrium quantity After-tax equilibrium consumer surplus After-tax equilibrium producer surplus $ Government revenue After-tax equilibrium aggregate surplus Deadweight loss $ Initial equilibrium aggregate surplus b. What are the effects after the government imposes a $8.10 tax per bushel.…
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