Question

7 of 8 Questions Assignment Score: 500/800 Resources Hint Check Answer 1 Media 100/100 Participation Credit < Question 7 of 8 > 0/100 2 Question O of Attempts Taxes Work it Out: Question 1 of 4 The U. S. government would like to help the American auto industry compete against foreign automakers that sell trucks in the United States. It can do this by imposing an excise tax on each foreign truck sold in the United States. The hypothetical pre-tax demand and supply schedules for imported trucks are given in the accompanying table. Price of imported truck Quantity demanded of imported trucks (thousands) Quantity supplied of imported trucks (thousands) 3 Media 100/100 Participation Credit $32,000 100 400 4 Media 31,000 100/100 Participation Credit 200 350 300 100/100 In the absence of government interference, what is the equilibrium price of an imported truck? The equilibrium quantity? 5 Question 3 of Attempts 250 300 400 500 30,000 29,000 28,000 27,000 Correct 200 150 0/100 600 6 Question O of Attempts equilibrium price: $ 0/100 7 Question O of Attempts equilibrium quantity: thousand 8 Media 100/100 Participation Credit

Answer 1

Without government intervention the market is in equilibrium when quantity demanded is equal to quantity supplied.

Equilibrium quantity=300 thousands

Equilibrium price=$30,000