In the market shown, the
original equilibrium price is 60 cents. A tax is then implemented
on the buyer. After the implementation of the tax, the buyer pays a
price of _____ cents per unit of the product.
a. 64
b. 60
c. 90
d. 58
If 18 units are sold at a price of $20, what is the producer surplus on the last jar sold?
a. $15
b. $135
c. $0
d. $270
Homework Answers
Answer 1 option d
The buyers pay a price of 58 cents
equilibrium price is 60 cents and the equilibrium quantity is 120. If the tax is imposed on buyers, the demand curve shifts down by the amount of the tax to D2. The downward shift in the demand curve leads to a decline in the equilibrium price to 58 cents (the amount received by sellers from buyers
Answer 2
Option c 
Add Answer to:
In the market shown, the
original equilibrium price is 60 cents. A tax is then implemented...
Figure 8-9 The vertical distance between points A and C represents a tax in the market....
Figure 8-9 The vertical distance between points A and C represents a tax in the market. 1000 Price Supply 900 Demand 10 20 30 60 90 60 70 80 90 100110 Quantity Refer to Figure 8-9. The producer surplus without the tax is O a $3,000 O b.$8,000 O c. $12,000 O d. $24,000
Part 1. What was the equilibrium price in this market before the tax? What is the amount of the tax? How much of the t...
Part 1.
What was the equilibrium price in this market before the
tax?
What is the amount of the tax?
How much of the tax will the buyers pay?
How much of the tax will the sellers pay?
How much will the buyer pay for the product after the tax is
imposed?
How much will the seller receive after the tax is imposed?
As a result of the tax, what has happened to the level of
output?
Calculate the economic...
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Skipped F WE--- According to the graph shown, if the market goes from equilibrium to having...
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question 1. A and B answered already c. What is the new equilibrium point? Show the...
question 1. A and B answered already
c. What is the new equilibrium point? Show the government revenue graphically? d. Label the portion of tax that buyer pays and the portion that seller pays? e. What is the price the sellers receive? II. Short Answers (10 Points): 1. (5 Points) Using the equations shown below, answer the following questions with a carefully labelled graph (without calculations). QD a-bP; Qs =c + dP a. Draw demand and supply curves, and show...
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Which of the following statements are correct? [Select all
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A).The producer surplus increases but the consumer surplus
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Figure 8-9 The vertical distance between points A and C represents a tax in the market. 1000 Price Supply 900 Demand 10 20 30 60 90 60 70 80 90 100110 Quantity Refer to Figure 8-9. The producer surplus without the tax is O a $3,000 O b.$8,000 O c. $12,000 O d. $24,000
Part 1.
What was the equilibrium price in this market before the
tax?
What is the amount of the tax?
How much of the tax will the buyers pay?
How much of the tax will the sellers pay?
How much will the buyer pay for the product after the tax is
imposed?
How much will the seller receive after the tax is imposed?
As a result of the tax, what has happened to the level of
output?
Calculate the economic...
Individual demand and consumer surplus
Consider the market for apartments. The market price of each
apartment is $180,000, and each buyer demands no more than one
apartment.
Suppose that Van is the only consumer in the apartment market. His
willingness to pay for an apartment is $315,000. Based on Van's
willingness to pay, the following graph shows his demand curve for
apartments.
Now, suppose another buyer, Amy, enters the market for
apartments, and her willingness to pay is $225,000.
Based...
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