Macroeconomics economics
Illustrates the market for pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve.
a. Draw the competitive market equilibrium. Label the price, quantity, consumer surplus, and producer surplus. Is there any deadweight loss? Explain.
b. Suppose that the government forces each pizzeria to pay a $1 tax on each pizza sold. Illustrate the effect of this tax on the pizza market, being sure to label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?
c. If the tax were removed, pizza eaters and sellers would be better off, but the government would lose tax revenue. Suppose that consumers and producers voluntarily transferred some of their gains to the government. Could all parties (including the government) be better off than they were with a tax? Explain using the labeled areas in your graph
Homework Answers
wanna check final answer I already did it Taxation Suppose now the government decides to intervene the market with...
wanna check final answer I already did it
Taxation Suppose now the government decides to intervene the market with a tax on producers of $4, determine the price for the consumer, the g. price for the producer, and the quantity produced with the tax Draw a graph (Diagram 4) representing the market for Hallowcen costurmes with a tax on producers of $4. Accurately label and show the h. area for consumers (CS), producer surplus (PS), deadweight loss (DWL), and government...
I need help solving this Asap. thanks alot. Figure 1: Supply and Demand in the Market...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/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...
I need help with these Mcq's please. Thank you 37. Efficiency in a market is achieved...
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...
Suppose that the demand curve for wheat is Qd= 400-10p Qs= 10p The government provides producers with a specific subsidy...
Suppose that the demand curve for wheat is Qd= 400-10p Qs= 10p The government provides producers with a specific subsidy of S=$11 per unit. How do the equilibrium price and quantity change? The equilibrium price by $_______ and the equilibrium quantity by $_______ units. (Enter numeric responses using real numbers rounded to two decimal places.) What effect does this tax (subsidy) have on consumer surplus, producer surplus, government revenue, welfare, and deadweight loss? Consumer surplus (increase or decrease) by $...
C) Suppose that the demand and supply for pizza on a college campus is given by Demand: Qd 20,000...
c) Suppose that the demand and supply for pizza on a college campus is given by Demand: Qd 20,000 1,000P Supply: Qs 2,000P - 10,000 Where Qd is demand, Qs is supply and P is the price per pizza in dollars. Please put your numerical answers to each part of this question in the table below. Write your explanation in your exam book. I book. a) Solve for the equilibrium price and quantity, consumer and producer surplus, and DWL. Explain...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No marks will be allocated for answers without work. 1. Halloween costumes are becoming more popular as we are getting closer to Halloween. The domestic demand and supply for Halloween costumes in Canada are given by the following equations, where is the quantity of Halloween costumes and P is the price of Halloween costumes: P = 80 - (1/500) Q and P - 20 +...
This assignment asks you to solve for equilibrium in a market and then look at the...
This assignment asks you to solve for equilibrium in a market and then look at the impact of a price ceiling, a price floor and a tax. The correct answers to these questions will vary across students. This is because the numerical values of some parameters are dependent on your student members. Suppose supply and demand for pizza are given by: Q" = 110 - OP QS = BP If the last digit of your student number is not 0,...
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...
Suppose market demand for bread is given by the equation QD = 12-P while the market...
Suppose market demand for bread is given by the equation QD = 12-P while the market supply equation is Qs = 2P. a. Calculate the equilibrium price and quantity, consumer surplus, and producer surplus in the market for tires. Graph your results. b. Suppose the government imposes a tax on tire producers of $3 per tire. i. What price will the buyer pay? What is the burden to consumers? What amount per unit will the seller receive? What is the...
Macroeconomics economics
Suppose that a market is described by the following supply and demand equations:QS = 2PQD = 300 – Pa. Solve for the equilibrium price and the equilibrium quantity.b. Suppose that a tax of T is placed on buyers, so the new demand equation isQD = 300 – (P + T).Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? c. Tax revenue is T X Q. Use your answer...
wanna check final answer I already did it
Taxation Suppose now the government decides to intervene the market with a tax on producers of $4, determine the price for the consumer, the g. price for the producer, and the quantity produced with the tax Draw a graph (Diagram 4) representing the market for Hallowcen costurmes with a tax on producers of $4. Accurately label and show the h. area for consumers (CS), producer surplus (PS), deadweight loss (DWL), and government...
I need help solving this Asap. thanks alot.
Figure 1: Supply and Demand in the Market for a Good Price ($/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...
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...
c) Suppose that the demand and supply for pizza on a college campus is given by Demand: Qd 20,000 1,000P Supply: Qs 2,000P - 10,000 Where Qd is demand, Qs is supply and P is the price per pizza in dollars. Please put your numerical answers to each part of this question in the table below. Write your explanation in your exam book. I book. a) Solve for the equilibrium price and quantity, consumer and producer surplus, and DWL. Explain...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No marks will be allocated for answers without work. 1. Halloween costumes are becoming more popular as we are getting closer to Halloween. The domestic demand and supply for Halloween costumes in Canada are given by the following equations, where is the quantity of Halloween costumes and P is the price of Halloween costumes: P = 80 - (1/500) Q and P - 20 +...
This assignment asks you to solve for equilibrium in a market and then look at the impact of a price ceiling, a price floor and a tax. The correct answers to these questions will vary across students. This is because the numerical values of some parameters are dependent on your student members. Suppose supply and demand for pizza are given by: Q" = 110 - OP QS = BP If the last digit of your student number is not 0,...
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...
Suppose market demand for bread is given by the equation QD = 12-P while the market supply equation is Qs = 2P. a. Calculate the equilibrium price and quantity, consumer surplus, and producer surplus in the market for tires. Graph your results. b. Suppose the government imposes a tax on tire producers of $3 per tire. i. What price will the buyer pay? What is the burden to consumers? What amount per unit will the seller receive? What is the...
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