ZuoTi.Pro
Question

2. Suppose that the daily market for red wine in the Quad Cities is estimated by: Qd = 100 - 5P Qs = -8 +4P Where P is in dol
g. (0.5) By how much does the price paid by buyers increase as a result of the tax? h. (0.5) By how much does the price recei
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
2. Suppose that the daily market for red wine in the Quad Cities is estimated by:...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 2: Consider the market for ice cream where the demand is given by QD 20-...

    Question 2: Consider the market for ice cream where the demand is given by QD 20- 2P and the supply of ice cream is given by QS 4P 10 a Graph the supply and demand curves and find the equilibrium price and quantity b Suppose the government imposes a $1 tax on ice cream, to be collected from the buyer. Plot the new curve. What is the new equilibrium price and quantity? What happens to the price paid by the...

  • The following graph shows the daily market for wine when a tax on sellers is set...

    The following graph shows the daily market for wine when a tax on sellers is set at $0 per bottle. Suppose the government institutes a tax of $40.60 per bottle, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax in the Tax on Sellers field and move the green line to the after-tax equilibrium by adjusting the value in the Quantity field. Then enter zero in the Tax on...

  • 4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 -...

    4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 - 5P Supply: Qs = 40 + 5P If the government collects a $5 specific tax from sellers (here you can change the supply equation to Qs = 40 + 5(P-t) or Qs = 15+ 5P, How much will the quantity demanded change from the amount demanded before the tax? What price will consumers pay after the tax? What price will sellers receive after the...

  • 7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for...

    7. Effect of a tax on buyers and sellers Suppose the calculator illustrates the market for wine in the United States. The orange (upward-sloping) line represents the supply curve of wine, and the blue (downward-sloping) line represents the market demand. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. The market is initially in equilibrium. Then the government institutes a $11.60 per bottle tax...

  • The following graph shows the daily market for wine. Suppose the government institutes a tax of $46.40 per bottle.

    The following graph shows the daily market for wine. Suppose the government institutes a tax of $46.40 per bottle. This places a wedge between the price buyers pay and the price sellers receive. Fill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity...

  • uples/theory. 1. Suppose that for the United States, (%A Gun Murder Rate)/(%A Gun OwnerShip Rate) =...

    uples/theory. 1. Suppose that for the United States, (%A Gun Murder Rate)/(%A Gun OwnerShip Rate) = .009.1 la. If gun control legislation were able to reduce gun ownership by 99 percent, how exactly would society benefit? 1b. Based upon your answer in la, What can you conclude about the likely efficacy of gun control legislation in the United States? 2. Refer back to#1, suppose the demand for guns is Q 500 .45P and the supply of guns is Q- 100+...

  • The supply and demand for widgets are given by the following equations: QD = 500,000 –...

    The supply and demand for widgets are given by the following equations: QD = 500,000 – 20,000P QS = 30,000P where P = the price per widget and QD is the quantity of widgets demanded per year and QS is the quantity of widgets demanded per year. What is the equilibrium price and quantity of widgets? Suppose that a $1 per widget tax is levied on the sellers of widgets. What is the impact of this tax on the equilibrium...

  • 1. Suppose that for the United States, (%A Gun Murder Rate)/(%A Gun OwnerShip Rate) =.009. 1a. If gun control legi...

    1. Suppose that for the United States, (%A Gun Murder Rate)/(%A Gun OwnerShip Rate) =.009. 1a. If gun control legislation were able to reduce gun ownership by 99 percent, how exactly would society benefit? 1b. Based upon your answer in la, What can you conclude about the likely efficacy of gun control legislation in the United States? 2. Refer back to#1, suppose the demand for guns is Q guns is Q 100 + .55P. How many guns would be affected...

  • Consider an industry with market demand Q = 400 − 5p, (1) and market supply Q...

    Consider an industry with market demand Q = 400 − 5p, (1) and market supply Q = 100+10p. (2) (8) What is the market equilibrium price and quantity? (9) Suppose the government imposes a tax of $6 per unit to be paid by sellers. What is the new supply curve? (Hint you need first find the inverse supply curve) (IV) (10) Suppose the demand elasticity for coffee is −0.3. If the coffee price increases by 1%, will the firm’s revenue...

  • The following graph shows the daily market for wine. Suppose the government institutes a tax of $11.60 per price buyers pay and the price sellers receive

    The following graph shows the daily market for wine. Suppose the government institutes a tax of $11.60 per price buyers pay and the price sellers receiveFill in the following table with the quantity sold, the price buyers pay, and the price sellers receive before and after the tax. Using the data you entered in the previous table, calculate the tax burden that falls on buyers and on sellers, respectively, and calculate the price elasticity of demand and supply over the relevant...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT