Initial Equilibrium is at
Demand = Supply
70 - P = P - 14
70 + 14 = P + P
2P = 84
P = 84/2 = 42
So, Equilibrium Price = $42
At a unit tax of $1 Price rises to $42+$1 = $43
Now, Producer Surplus under taxation
Where, QD is quantity demanded at new price
P* is the supply price at QD
Pmin is the minimum supply price
So, QD at P = $43 from demand equation
QD = 70 - 43 = 27
P* with Q = 27 in supply equation
P* = 27 + 14 = 41
Pmin at Q = 0 in supply equation
Pmin = 0 + 14 = 14
So,
Producer Surplus = 1/2 * (41 - 14) * 27
= 1/2 * 27 * 27
= 729/2
= 364.5
So, Producer Surplus after tax is 364.5
Questiul 5 (1 PUIL) Suppose that in a perfectly competitive market, demand is given by Q=70.0-P...
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-70.0-P and supply is given by Q-P-18.0. The government imposes a per-unit excise tax of $1 on the good. What is the tax revenue collected by the government? No units, no rounding. Your Answer: Your Answer Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-75.0-P and supply is given by Q-P-26.0. The government imposes a per-unit excise tax...
Suppose that in a perfectly competitive market, demand is given by Q=58.0-P and supply is given by Q=P-27.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding.
Question 5 (1 point) Suppose that in a perfectly competitive market, demand is given by Q 56.0-P and supply is given by Q=P-13.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding. Your Answer: Your Answer Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given by 100 bP QS P- 20 where b-1.0. The government imposes a...
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding.
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-69.0-P and supply is given by Q=P-20.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=78.0-P and supply is given by Q=P-30.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Question 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P and supply is given by Q=P-36.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding. Your Answer: Your Answer View hint for Question 1 Question 2 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=71.0-P and supply is given by Q=P-31.0. The government imposes a per-unit excise tax of $1 on the good. What is...
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=88.0-P and supply is given by Q=P-20.0. The government imposes a per-unit excise tax of $1 on the good. What is the tax revenue collected by the government? No units, no rounding. Your Answer: Your Answer
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is the dead-weight loss? No units, no rounding.