Suppose supply is P= ―3 + (2/5)Qs and demand is P= 51 ― (1/10)Qd. If the government put a tax of $1 per unit on the good, how much would the deadweight loss be reduced?
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Suppose supply is P= ―3 + (2/5)Qs and demand is P= 51 ― (1/10)Qd. If the government put a tax of $1 per unit on the good, how much would the
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- The demand and supply equations for a product are: Q* = 0.2 300 – 6P and Q' = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 –8P Supply: Q = -160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 8 4. 0.5 1.25The demand and supply equations for a product are: Qd= 300 — 6P and Qs= -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus, and deadweight loss
- If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity supplied = 2p-4. What would be the price paid by consumers if there was a 6 dollar tax on tea?Suppose that the demand and supply functions for a good are given as follows: Demand: 0-720-8P Supply: Q =-160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 0.5 1.25
- The demand and supply equations for a product are: Qd = 300 - 6P and Qs = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumer pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 on the cigarette sellers. By how much would buyers share the tax burden respectively? Show your calculation.Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 – 8P Supply: Q =-160 + 3P What is the price elasticity of supply at the equilibrium when there is no tax? 0.6 3. 15 6.
- At the current market equilibrium, the price elasticity of supply for a certain good is much lower than the price elasticity of demand. if the government imposes a $5 specific tax on this good, who will bear more of the burden of the tax?Demand for edible banjos is given by qd = 1000 -8p. Supply is given byqs = 2p. C) If the government imposes a tax of 50, what is the new equilibrium quantity?D) What is the burden of the tax on consumers?Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose a tax of $3 per unit is placed on the good. What is the size of the deadweight loss? What fraction of the tax is paid by producers?
