Homework Answers
E is correct
Producer surplus is the area above the supply curve and below the price. Market price received by sellers after imposition of tax is Ps.
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3: P. P. 4 e 5: Which areas represent producer surplus after the tax is imposed...
Consumer surplus (after-tax) E. Producer surplus (after-tax): h. Total surplus: i. Amount of tax ...
Consumer surplus (after-tax) E. Producer surplus (after-tax): h. Total surplus: i. Amount of tax paid by buyer (tax incidence quantity sold): . Amount of tax paid by seller (tax incidence quantity sold): k. Total deadweight loss: Figure 2a. Figure 2b. Price t Prise pply Supply Denand 03 1 132 23 3 33 4435 051 13 33 3 354455 Dwant
Consumer surplus (after-tax) E. Producer surplus (after-tax): h. Total surplus: i. Amount of tax paid by buyer (tax incidence quantity sold):...
The following graph depicts a market where a tax has been imposed. Pe was the equilibrium...
The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and Care rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers....
The diagram above shows how the imposition of a sales tax affects the market. Producer surplus...
The diagram above shows how the imposition of a sales tax affects the market. Producer surplus before the tax is areas a 1, 2, 3, 4 6. 5, 6, 7, 8, 9 c. 1, 2 d. 5,8 The imposition of a tariff in a market will usually result in a. an increase in consumer surplus, an increase in producer surplus, and an increase in total surplus. b. an increase in consumer surplus, an increase in producer surplus, and a decrease...
Use the following information to make the appropriate matches. It is possible that some choices will...
Use the following information to make the appropriate matches. It is possible that some choices will be used more than once. The following graph depicts a market where a tax has been imposed. P. was the equilibrium price before the tax was imposed, and was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. Qt units are sold after the tax is imposed. NOTE: The areas B and...
Questions 3 & 4 are more important. Explain consumer and producer surplus and provide an exa...
Questions 3 & 4 are more important. Explain consumer and producer surplus and provide an example of each. What happens to the consumer surplus and producer surplus when price increases or decreases? Explain the relationship between the tax size and deadweight loss. When tax causes deadweight loss then why it is imposed in the first place? Who gains in this situation? Also if tax has to be imposed how to determine what size of tax will generate optimum tax revenue...
How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax i...
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 welfare after government imposes
a tax of $5 per unit on buyers.
Total Surplus
Government Revenue
DWL
Producer Surplus
Supply Demand 10 20 30 40 50 60 70 80 Quantity
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150:...
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Calculate the consumer and producer surpluses before and after a tax is imposed on the production...
Calculate the consumer and producer surpluses before and after a tax is imposed on the production of the following good. Also calculate the tax revenue, DWL, and percent of incidence on each side of the market. 4) Price S+$5 Tax CS Pre-Tax PS Pre-Tax CS Post-Tax PS Post-Tax Tax Revenue DWL 20 18 15 Incidence: % on Consumers % on Producers 0 50 60 Quantity (#/Time)
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium...
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium price and quantity, р Find the portion of the tax paid by the producer and the portion of the tax paid by the consumer, and Consumer Producer Find the tax revenue generated for the government. Total Tax 4. Which scenario is best for the government and why? y me + b R(q) - Price Quantity m - - - y - y = m(x-x)...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at RO. 1) Refer to Figure 4-10. What is the area that represents the portion of producer surplus transferred to consumers as a result of the rent ceiling? A) D+E B) D+F CD DF 2) Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling? A) G+ H B ) J+ H C ) C...
Consumer surplus (after-tax) E. Producer surplus (after-tax): h. Total surplus: i. Amount of tax paid by buyer (tax incidence quantity sold): . Amount of tax paid by seller (tax incidence quantity sold): k. Total deadweight loss: Figure 2a. Figure 2b. Price t Prise pply Supply Denand 03 1 132 23 3 33 4435 051 13 33 3 354455 Dwant
Consumer surplus (after-tax) E. Producer surplus (after-tax): h. Total surplus: i. Amount of tax paid by buyer (tax incidence quantity sold):...
The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and Care rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers....
The diagram above shows how the imposition of a sales tax affects the market. Producer surplus before the tax is areas a 1, 2, 3, 4 6. 5, 6, 7, 8, 9 c. 1, 2 d. 5,8 The imposition of a tariff in a market will usually result in a. an increase in consumer surplus, an increase in producer surplus, and an increase in total surplus. b. an increase in consumer surplus, an increase in producer surplus, and a decrease...
Use the following information to make the appropriate matches. It is possible that some choices will be used more than once. The following graph depicts a market where a tax has been imposed. P. was the equilibrium price before the tax was imposed, and was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. Qt units are sold after the tax is imposed. NOTE: The areas B and...
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 welfare after government imposes
a tax of $5 per unit on buyers.
Total Surplus
Government Revenue
DWL
Producer Surplus
Supply Demand 10 20 30 40 50 60 70 80 Quantity
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Calculate the consumer and producer surpluses before and after a tax is imposed on the production of the following good. Also calculate the tax revenue, DWL, and percent of incidence on each side of the market. 4) Price S+$5 Tax CS Pre-Tax PS Pre-Tax CS Post-Tax PS Post-Tax Tax Revenue DWL 20 18 15 Incidence: % on Consumers % on Producers 0 50 60 Quantity (#/Time)
3. Assume that there is a $14 tax imposed on the consumer, find the new equilibrium price and quantity, р Find the portion of the tax paid by the producer and the portion of the tax paid by the consumer, and Consumer Producer Find the tax revenue generated for the government. Total Tax 4. Which scenario is best for the government and why? y me + b R(q) - Price Quantity m - - - y - y = m(x-x)...
Figure 4-10 Figure 4-10 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at RO. 1) Refer to Figure 4-10. What is the area that represents the portion of producer surplus transferred to consumers as a result of the rent ceiling? A) D+E B) D+F CD DF 2) Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling? A) G+ H B ) J+ H C ) C...
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