Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...

Question

Question

Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equations

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer

Option 4

equal on both

========

Before tax equilibrium
Qd=Qs
50000-2000P=-10000+2000P
4000P=60000
P=15
Q=50000-2000*15=20000

after tax equilibrium is at
Qd(with tax)=Qs
50000-2000(P+T)=-10000+2000P
50000-2000P-8000=-10000+2000P
4000P=52000
P=13=after tax price for sellers

Tax incidance on producer =before tax price for producer -after tax
=15-13
=2
Tax incidance on consumer =tax - tax incidance on producer
=4-2
=2

Add a comment

Answer 2

Similar Homework Help Questions

Question 40 1 pts Refer to Figure 4-2. What is the Deadweight Loss of this tax? Figure 4-2 The equations represent the...

Question 40 1 pts Refer to Figure 4-2. What is the Deadweight Loss of this tax? Figure 4-2 The equations represent the demand and supply for silver pendants. The government is considering imposing a $4 per unit tax on buyers of silver pendants. QD = 50,000 - 2000P QS = -10,000 + 2000P QD (with tax) = 50,000 - 2000(P+T) $4,000 $6,000 $8,000 There is not enough information to calculate Deadweight Loss
Question 41 1 pts Refer to Figure 4-2. Suppose the government allows imports into the silver...

Question 41 1 pts Refer to Figure 4-2. Suppose the government allows imports into the silver pendants market for the first time. Figure 4-2 The equations represent the demand and supply for silver pendants. The government is considering imposing a $4 per unit tax on buyers of silver pendants. QD = 50,000 - 2000P QS = -10,000 + 2000P QD (with tax) = 50,000 - 2000(P+T) The market price would be higher and domestic production would decrease. The market price...
The equations represent the demand and supply for silver pendants. The government is considering imposing a...

The equations represent the demand and supply for silver pendants. The government is considering imposing a $4 per unit tax of buyers of silver pendants. QD= 50,000-2,000P QS= -10,000+2,000P QD (with tax)= 50,000-2,000(P+T) 1. What is the before tax equilibrium price (P) and quantity (Q- in thousands) of pendants? a. P= $50; Q= 10 thousand b. P= $20; Q= 15 thousand c. P= $15; Q= 20 thousand d. P= $10; Q= 30 thousand. 2. Who carries the highest incidence of...

2. (Total: 15 pts) The following equations represent the inverse supply and demand functions in the market for Good A:...

2. (Total: 15 pts) The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) (2pts) Compute the competitive market equilibrium price and...
The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A: PC =80-1⁄2QD PP =14+QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) Compute the competitive market equilibrium price and output without the tax. b) Compute producer surplus and consumer surplus without...
The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. c) (2pts) Compute the competitive market equilibrium price and output with the tax. d) (4pts) Compute producer surplus and consumer surplus with the tax.e the government is considering...

The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A: PC = 80 - ½ QD PP = 14 + QS where PC and PP are the prices paid by consumers and received by producers respectively. QD and QS are the quantities demanded and supplied, respectively. Suppose the government is considering imposing a tax of $6 per unit of Good A. a) (2pts) Compute the competitive market equilibrium price and output without the tax....
Please help with the following microeconomics question 2: 1. A city has a large number of...

Please help with the following microeconomics question 2: 1. A city has a large number of casinos. The demand by patrons for the games (in thousands per week) is Qd = 90 - 3P and the supply is Qs = 3P where P is the price charged to play a game. What is the equilibrium number (quantity) of games played? What is the equilibrium price? 2. Continue your analysis of the casino market in the city: demand by patrons for...
Please help with the following microeconomics question 3: 1. A city has a large number of...

Please help with the following microeconomics question 3: 1. A city has a large number of casinos. The demand by patrons for the games (in thousands per week) is Qd = 90 - 3P and the supply is Qs = 3P where P is the price charged to play a game. What is the equilibrium number (quantity) of games played? What is the equilibrium price? 2. Continue your analysis of the casino market in the city: demand by patrons for...

QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...

QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...

Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...

Homework Answers

Add Answer to:
Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...

Post as a guest

Earn Coins

Question 40 1 pts Refer to Figure 4-2. What is the Deadweight Loss of this tax? Figure 4-2 The equations represent the...

Question 41 1 pts Refer to Figure 4-2. Suppose the government allows imports into the silver...

The equations represent the demand and supply for silver pendants. The government is considering imposing a...

2. (Total: 15 pts) The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A:...

The following equations represent the inverse supply and demand functions in the market for Good A:...

Please help with the following microeconomics question 2: 1. A city has a large number of...

Please help with the following microeconomics question 3: 1. A city has a large number of...

QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...

Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...

Homework Answers

Add Answer to: Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...

Post as a guest

Earn Coins

Add Answer to:
Question 39 1 pts Refer to Figure 4-2. Who carries the highest incidence of taxation in this market? Figure 4-2 The equ...