Homework Answers
12. The amount of excise tax is the 10-3= $7. Before tax , the equilibrium price is $5 and after tax , the producer receive =$3, this implies that the portion of the tax paid by producers = $(5-3)= $2. Hence,option(B) is correct.
13. Before tax, the equilibrium price is $6 and after tax , the consumers pay =$7 . This implies that consumers paid $(7-6)= $1 of the excise tax. Hence,option(C) is correct.
14. Deadweight loss is shown by the triangle area = $(0.5)(60-40)(7-2)= $50. Hence,option(B) is correct.
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FIGURE #3 *101 ------- Quantity 12. {Refer to Figure 3 above). In the market shown, S'...
Price D 6 8 Quantity 8. Refer to the above graph. Assume the market for this...
Price D 6 8 Quantity 8. Refer to the above graph. Assume the market for this product is in equilibrium at the intersection of D2 and S. The shift in supply from S to Sz is due to an excise tax imposed on the product. The incidence of the tax is: $1 from the buyers and $3 from the sellers $3 from the buyers and $3 from the sellers $1 from the buyers and $1 from the sellers $4 from...
1. Refer to Figure 1-5. The figure above represents demand and supply in the market for...
1. Refer to Figure 1-5. The figure above represents demand and
supply in the market for cigarettes. Use the diagram to answer the
following questions.
a. How much is the government tax on each pack of
cigarettes?
b. What portion of the unit tax is paid by consumers?
c. What portion of the unit tax is paid by producers?
d. What is the quantity sold after the imposition of the
tax?
e. What is the after-tax revenue per pack received...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...
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...
. Refer to Figure 1-5. The figure above represents demand and supply in the market for cigarettes. Use the diagram to a...
. Refer to Figure 1-5. The figure above represents demand and
supply in the market for cigarettes. Use the diagram to answer the
following questions.
a. How much is the government tax on each pack of
cigarettes?
b. What portion of the unit tax is paid by consumers?
c. What portion of the unit tax is paid by producers?
d. What is the quantity sold after the imposition of the
tax?
e. What is the after-tax revenue per pack received...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS-P. For each of the following policies, calculate the price and quantity that will be traded and the value of the deadweight loss. a) An excise tax of S1 per unit, paid by producers. b) A subsidy of $2 per unit, paid to consumers. c) A price floor of S7. d) A price ceiling of S4. e) A production quota of 3...
Price ($) 100T Social Cost ! Private Cost 50 Quantity Figure 7 23. Refer to Figure 7, which shows a market in which the...
Price ($) 100T Social Cost ! Private Cost 50 Quantity Figure 7 23. Refer to Figure 7, which shows a market in which the production of the good generates a $45 external cost. Which area(s) represent(s) the deadweight loss associated with the competitive market outcome? a) A b) B c) C d) B+C 24. Refer to Figure 7, which shows a market in which the production of the good generates a $45 external cost. Which of the following policies would...
15. {Refer to Figure 4 above). In the market shown, tax revenue is: A. $80 B. $200 C. $100 D. $50 16. When s...
15. {Refer to Figure 4 above). In the market shown, tax revenue is: A. $80 B. $200 C. $100 D. $50 16. When supply and demand both become more inelastic, deadweight loss tends to: A. Decrease B. Increase 17. When supply and demand both become more inelastic, tax revenue tends to: A. Decrease B. Increase 18. Jacquelyn is a student at a major state university. Which of the following is not an example of an explicit cost of her attending...
Price Controls and Taxes: Price Supply Pit------- - - - - E DE Demand - Quantity 23) In the figure shown above, if...
Price Controls and Taxes: Price Supply Pit------- - - - - E DE Demand - Quantity 23) In the figure shown above, if prices go from PI to P3, what could this be due to? a. There is a tax imposed on suppliers per unit sold. b. Demand for the good increases due to an increase in people's incom . c. There is a sales tax imposed on consumers. d a binding price floor is imposed e. Both c and...
I need help solving this Asap. thanks alot. Figure 1: Supply and Demand in the Market...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
rice P4 Supply H D F G Demand Quantity 02 29. Refer to Figure 7-23 The figure depicts a market equilibrium where th...
rice P4 Supply H D F G Demand Quantity 02 29. Refer to Figure 7-23 The figure depicts a market equilibrium where there is a tax on the good transacted. The deadweight loss as a result of the tax is represented by the area of a. A+B+D+F. b. C+H. c. B+D d. G+I Figure 8-16 Price Panel (b) Price Pasel (a) Sepply Dand Dand 1 2 34 5 67 Deantity 4 567 Denti- 1 2 30. Refer to Figure 8-16....
Price D 6 8 Quantity 8. Refer to the above graph. Assume the market for this product is in equilibrium at the intersection of D2 and S. The shift in supply from S to Sz is due to an excise tax imposed on the product. The incidence of the tax is: $1 from the buyers and $3 from the sellers $3 from the buyers and $3 from the sellers $1 from the buyers and $1 from the sellers $4 from...
1. Refer to Figure 1-5. The figure above represents demand and
supply in the market for cigarettes. Use the diagram to answer the
following questions.
a. How much is the government tax on each pack of
cigarettes?
b. What portion of the unit tax is paid by consumers?
c. What portion of the unit tax is paid by producers?
d. What is the quantity sold after the imposition of the
tax?
e. What is the after-tax revenue per pack received...
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...
. Refer to Figure 1-5. The figure above represents demand and
supply in the market for cigarettes. Use the diagram to answer the
following questions.
a. How much is the government tax on each pack of
cigarettes?
b. What portion of the unit tax is paid by consumers?
c. What portion of the unit tax is paid by producers?
d. What is the quantity sold after the imposition of the
tax?
e. What is the after-tax revenue per pack received...
Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS-P. For each of the following policies, calculate the price and quantity that will be traded and the value of the deadweight loss. a) An excise tax of S1 per unit, paid by producers. b) A subsidy of $2 per unit, paid to consumers. c) A price floor of S7. d) A price ceiling of S4. e) A production quota of 3...
Price ($) 100T Social Cost ! Private Cost 50 Quantity Figure 7 23. Refer to Figure 7, which shows a market in which the production of the good generates a $45 external cost. Which area(s) represent(s) the deadweight loss associated with the competitive market outcome? a) A b) B c) C d) B+C 24. Refer to Figure 7, which shows a market in which the production of the good generates a $45 external cost. Which of the following policies would...
15. {Refer to Figure 4 above). In the market shown, tax revenue is: A. $80 B. $200 C. $100 D. $50 16. When supply and demand both become more inelastic, deadweight loss tends to: A. Decrease B. Increase 17. When supply and demand both become more inelastic, tax revenue tends to: A. Decrease B. Increase 18. Jacquelyn is a student at a major state university. Which of the following is not an example of an explicit cost of her attending...
Price Controls and Taxes: Price Supply Pit------- - - - - E DE Demand - Quantity 23) In the figure shown above, if prices go from PI to P3, what could this be due to? a. There is a tax imposed on suppliers per unit sold. b. Demand for the good increases due to an increase in people's incom . c. There is a sales tax imposed on consumers. d a binding price floor is imposed e. Both c and...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/unit) 35 27 Supply 23 19 15 13 11 9 Demand 5 13 17 Quantity (units) 11 12 10 8 6 14. Refer to Figure 1. At the market equilibrium, total consumer surplus is $10 b. $50 а. $100 d. $200 15. Refer to Figure 1. Holding the supply curve fixed, assume demand increased, which caused the equilibrium price to...
rice P4 Supply H D F G Demand Quantity 02 29. Refer to Figure 7-23 The figure depicts a market equilibrium where there is a tax on the good transacted. The deadweight loss as a result of the tax is represented by the area of a. A+B+D+F. b. C+H. c. B+D d. G+I Figure 8-16 Price Panel (b) Price Pasel (a) Sepply Dand Dand 1 2 34 5 67 Deantity 4 567 Denti- 1 2 30. Refer to Figure 8-16....
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