7. Before tax, equilibrium price = $600 and equilibrium quantity = 40.
Consumers surplus before tax = (1/2)*40*(1000 - 600)= $8000
After tax, Consumers pay $800 and equilibrium quantity is 20.
Consumers surplus after tax = (1/2)*20*(1000 - 800) = $2000
Therefore, Consumers surplus decreases by $(8000 - 2000) = $6000
Answer: option B
8. After tax buyers price is P'' and sellers get P'''. Consumers surplus is J. Producers surplus is M and government tariff revenue is (K + L). Total surplus after tax is (J + K + L + M).
Answer: option D
9. Producers surplus is the area below the price producers receive and above the supply curve. Before tax producers surplus is (1/2)*(10 - 2)*600 = $2400. After tax producers surplus is (1/2)*300*(6-2) = $600.
That is, producers surplus decreases by $(2400 - 600) = $1800
Answer: option B
QUESTION 7 Figure: The vertical distance between points A and C represents a tax in the...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
Figure 8-9 The vertical distance between points A and C represents a tax in the market. 1000 Price Supply 900 Demand 10 20 30 60 90 60 70 80 90 100110 Quantity Refer to Figure 8-9. The producer surplus without the tax is O a $3,000 O b.$8,000 O c. $12,000 O d. $24,000
1000 1 Price Refer to Figure 8. The vertical distance between points A and Crepresent a tax in the market. The producer surplus with the tax is /Supply 900+ 800 700+ 600 +- 500+ 200+ 100+/ Demand 10 20 30 40 50 60 70 80 90 100 110 Quantity A. $12,000. o B. $3,000. o C. $6,000. o OD. $9,000.
Figure 8-2 The vertical distance between points A and B represents a tax in the market. Supply Demand 05 is OS 1 15 2 25 3 35 4 4S 5 Quantity Refer to Figure 8-2. Producer surplus without the tax is $10, and producer surplus with the tax is $1. $4, and producer surplus with the tax is $1. $10, and producer surplus with the tax is $3. $4, and producer surplus with the tax is $3.
need to know the math behind finding these answers Figure &-6 The vertical distance between points A and B represents a tax in the market. Price 22 20 18 Supply 16 14 12 10 6 Demand 2 + Quantity 100 200 300 400 500 600 700 800 900 10001 1001200 8. Refer to Figure 8-6. Without a tax, the equilibrium price and quantity are a. $16 and 300. $10 and 300. d. $6 and 300. $10 and 600. b. c....
QUESTION 25 Figure: The figure below indicates a tax size of AB. 1 Price + Supply + + Demand + + + + + + + + + + 5 10 15 20 25 30 35 40 45 50 55 60 Quantity Refer to Figure 8-7. Which of the following statements is true about tax incidence? a. Buyers pays less tax then the sellers b. Buyers and sellers share the same burden of tax. C. Buyers and sellers both will...
D Question 20 1 pts Figure 8-7 The vertical distance between points A and B represents a tax in the market. Price 24 Supply 20 18 l6 14 10 5 10 15 20 25 30 35 40 45 0 55 60 Danti Refer to Figure 8-7. Which of the following statements is correct? The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $30. 。The loss of...
Figure 8-2 The vertical distance between points A and B represents a tax in the market. 1 Price + + + Supply + + + + + + + w + Demand 05 1 15 2 253 354 455 Quantity Refer to Figure 8-2. Total surplus without the tax is a $10, and total surplus with the tax is $2.50. b. $20, and total surplus with the tax is $7.50. C. $10, and total surplus with the tax is $7.50....
Figure 8-23. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax. Tax Revenue - Nwao Tax Size Refer to Figure 8-23. If the economy is at point A on the curve, then a decrease in the tax rate will increase the deadweight loss of the tax and increase tax revenue. increase the deadweight loss of the tax and decrease tax revenue. decrease the deadweight loss of the tax and decrease...
Figure 84 The vertical distance between points A and B represents a tax in the market Supply • 0 0 0 0 0 0 0 0 0 0 0 blolololo Demand 65 10 15 0.6 Dati Refer to Figure 8-4. The amount of tax revenue received by the government is equal to a. $245. b. $350 c. $490. d. $700 Figure 2-10 oooooo Panel (a) Panel (b) XXRRASS Refer to Figure 2.10, Panel(a). The movement from point to point could...