A) Tax revenue = (7000+16800)-9800 = 14000
B) Per unit tax
Since DWL = 9800 and change in quantity = 1400
DWL = 0.5*change in quantity*per unit tax
9800 = 0.5*1400*tax
9800 = 700*t
t = 9800/700 = 14
C) Since tax revenue = 14000 and tax = 14
tax revenue = quantity*tax
14000 = q*14
q = 14000/14 = 1000
See Hint (1 point) Part 1 The supply of smart watches is linear and upward sloping,...
Part 1 (1 point) D See Hint The supply of smart watches is linear and upward sloping, and the demand for smart watches is linear and downward sloping. Suppose the government imposes a tax of $3.00 per unit in the market for smart watches. In this market, the tax decreases consumer surplus by $1,500.00, and it decreases producer surplus by $3,000.00. The tax generates tax revenue of $3,000.00. The tax decreased the equilibrium quantity of the good by smart watches....
In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $10 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 113 units to 101 units. The deadweight loss of this tax is $______
1) Consider a normal market with a downward-sloping demand curve and an upward-sloping supply curve. Which of the following cases would definitely result in a decrease in consumer surplus? For each case, assume that the market is initially in equilibrium and that everything else is held constant except for the change described in the case Case 1: The supply curve shifts to the left. Case 2: The supp Case 3: The government imposes a binding price ceiling. Case 4: The...
1. Assuming that supply is upward-sloping, producer surplus: a) increases as price falls b) increases as price rises c) decreases as price rises d) does not depend on price
I need help with these Mcq's please. Thank you 37. Efficiency in a market is achieved when cial planner intervenes and sets the quantity of output after evaluating buyers willingness to pay and sellers' costs the sum of producer surplus and consumer surplus is maximized all firms are producing the end at the same low cost per unit. no buyer is willing to pay more than the equilibrium price for any unit of the good. C ( 38. Total surplus...
NOT SURE IF MY ANSWERS ARE CORRECT. Please help and see for any corrections! Question 15 6 pts Figure 8 per unit $100 $90 ..... $80 $701 $60 $501 $401 $30 $20 $10 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (in thousands) Refer to Figure 8 which shows the supply and demand in the market for microscopes. The government imposes a $30 per unit tax on this market. BEFORE the imposition of the...
I need help solving this Asap. thanks alot. Figure 1: Supply and Demand in the Market for a Good Price ($/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...
02 Question (5 points) 1st attempt Part 1 (2 points) Feedback O See Hint A monopolist has a cost function given by c(y) = y2 and faces an inverse demand curve given by P(y) = 120.00 – y, where P is the per-unit price and yis the quantity of output sold. Assume this monopolist cannot discriminate and charges a single price. What is the profit-maximizing level of output? * 120 What is its profit-maximizing price? * $ 120 Part 2...
2) Chile is an importer of computer chips, taking the world price of $12 per chip as given. Suppose Chile imposes a $7 tariff on chips. Which of the following outcomes is possible? A. The price of chips in Chile increases to $16; the quantity of Chilean-produced chips increases; and the quantity of chips imported by Chile decreases. B. The price of chips in Chile increases to $19; the quantity of Chilean-produced chips increases; and the quantity of chips imported...
1. What is the primary spatial or urban factor underlying an upward sloping labor supply curve in an open urban model? Draw a picture showing a labor market equilibrium. Assume that growth controls are put in place at the current equilibrium where those controls prevent the construction of new housing, but the current level of housing is sufficient to support the current population of the region. Explain and show the effect of these controls on the labor market picture. Hint:...