Question

AT&T 8:10 PM 80% --+ X Week 3 Subjective Assignment.doc Question 1: The figure below shows the market of tablets Refer to the above figure and analyze the following if the market price falls from $140 to $100 The change in the consumer surplus. Indicate whether the consumer surplus increased or What happened to the existing buyers in the market? Did they gain or lost? Calculate the Were there some new buyers entered the market or some existing buyers left the market? dollar amount. Whichever is the case, what is the consumer surplus gain or loss to them? Calculate the dollar amount Question 2: The figure below is the market of decorative pillows 15 12 18 24 30 36 54 60 66 12 Q Refer to figure and answer the following questions: Calculate the consumer surplus and producer surplus and total surplus at the equilibrium. If the govemment imposes a $6 tax per unit then what will be the new consumer surplus, new producer surplus and total surplus? Did the government gain something after the taxes are imposed? If yes, calculate the amount Is there any deadweight loss after the taxes? If yes calculate the amount and explain why it Open With Print

Answer 1