Question

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 revenue (GR). Calculate the consumer surplus (CS), producer surplus (PS), total surplus (TS), deadweight loss (DWL), and government revenue (GR). i. Subsidy Suppose now the government decides to intervene the market with a subsidy of$4, determine the price for the consumer, the price for j. the producer, and the quantity produced with the subsidy. Draw a graph (Diagram 5) representing the market for Halloween costumes with a subsidy of $4. Accurately label and show the area for k. consumers (CS), producer surplus (PS), deadweight loss (DWIL), and government revenue (GR). Calculate the consumer surplus (CS), producer surplus (PS), total surplus (TS), deadweight loss (DWL), and government revenue (GR). I. Quota Suppose now the government decides to intervene the market with a quota of 10000 units, determine the price for the consumer, the price for the producer, and the quantity produced with the quota. Draw a graph (Diagram 6) representing the market for Halloween costumes with a quota of 10000 units. Accurately label and show the area for consumers (CS), producer surplus (PS), deadweight loss (DWL), and government revenue (GR). Calculate the consumer surplus (CS), producer surplus (PS), total surplus (TS), deadweight loss (DWL), and government revenue m. (GR) o. Miscellancous or quota- do the consumers, the producers, Which of the scenarios-no government intervention, price floor, price ceiling., tax, subsidy, p. and the government each prefer the most? In which of the scenarios is the deadweight loss the largest? Why? q. True or falsc, no explanation required: If the inverse market supply of Halloween costumes becomes less elastic, then when there are no government interventions, consumer will benefit r. 6 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 O is the quantity of Halloween costumes and P is the price of Halloween costumes: P-80-(1/500)Qp and P-20+ (1/1000)Qs

Answer 1

g) after tax of $4
P = 20 + (1/1000)Qs + 4
P = 80 - (1/500)Qd
at equilibrium,
20 + (1/1000)Q + 4 = 80 - (1/500)Q
3/1000Q = 80 - 24
Q = 18666.67
P = 42.67

h)

90+ (0, 80) 80 Deadweight loss 70+ Consumer surplus 60+ Supply+tax Supply (18666.667, 42.667) (20000, 40) 40+ (0, 24) Producer surplus 20 Demand (0, 20) 10+ 20000 30000 4000 0000 0 10000

Violet part is govts revenue
Price to supplier = 42.67 - 4 = 38.67

i) CS = 1/2*(80-42.67)*18666.67 = 348413.39
PS = 1/2*(38.67-20)*18666.67 = 174253.36
Govt revenue = 4*18666.67 =  74666.68
Deadweight loss = 1/2*(40-20)*20000 + 1/2*(80-40)*20000 - 597333.44
= 600000 - 597333.44 = 2666.56

j) after subsidy of $4
P = 20 + (1/1000)Qs - 4
P = 80 - (1/500)Qd
at equilibrium,
20 + (1/1000)Q - 4 = 80 - (1/500)Q
3/1000Q = 80 - 16
Q = 21333.33
P = 37.33