2. Taxes and welfareConsider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes anytaxes.First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans in the absence of a tax. Then use the greenpoint (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilbrium price. Next, use the purple point (diamondsymbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Before Tax150135EquilibriumDemand120105Consumer Surplus9075Producer Surplus6045Supply30151009070102030405060QUANTITY (Fans)PRICE (Dollars per fan)80

Figure (1) below depicts the market for the given good. Here x-axis and y-axis measure the quantity…

Answered: 2. Taxes and welfare Consider the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Price 10 D, 10 15 Quantity The above graph shows a market with a tax imposed on consumers of a good. (a) On the graph, shade or label the region equal to the deadweight loss of the tax. Calculate the size of the deadweight loss. (b) On the graph, shade or label the region equal to the tax revenue from the tax. Calculate the size of the tax revenue.
8. Suppose we want regular cars to be gradually replaced by electric cars. There are several kinds of government interventions that could be used to make this happen, or at least to push the car market to produce and sell more electric cars. Explain how a tax could be used for this purpose, and then explain how a subsidy could be used for this purpose.
3. In the market for Samsung Galaxy S22, the demand function is Q = 200 - 2P, while the supply function is Q = 2P - 20, where P denotes the price, and Q the quantity of Samsung Galaxy S22. a. Calculate the equilibrium price and quantity! b. To reduce addiction to social media, the government imposes a specific tax of $5 on sellers. Calculate the new equilibrium price and quantity c. Now suppose the tax of $5 is imposed on buyers rather than sellers. Find the new equilibrium price and quantity.
Next question at The graph shows the demand curve for wallets and the market price of a wallet. Price (dollars per wallet) 18.00- 16.00- Draw a point that shows the value of the 30th wallet. Label it 1. 14.00- Draw a point that shows the willingness to pay for the 45th wallet. Label it 2. 12.00- Draw an arrow that shows the consumer surplus on the 45th wallet. Label it CS. 10.00- 8.00- What is the consumer surplus on the 45th wallet? 6.00- Market The consumer surplus on the 45th wallet is $. price 4.00- >>> Answer to 2 decimal places. 2.00 em 0.00 15 30 45 60 75 90 105 As Quantity (wallets per day) >>> Draw only the objects specified in the question. Ass O Time Remaining: 00:53:47 Next ced se (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e
First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer handbags in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. PRICE (Dollars per handbag) 500 450 400 Demand 350 300 250 200 Before Tax Supply 150 100 50 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Handbags) + Equilibrium Consumer Surplus Producer Surplus ?
Suppose that the government imposes a tax on eigarettes. Use the diagram below to answer the questions. Dis the demand curve before tax, S is the supply curve before tax and Sis the supply curve after the tax Price 18 12 10 10 12 Qua (a) For the market for cigarettes without the tax indicate: (0) Price paid by consumers (8) Price paid by producers () Quantity of cigarettes sold (w) Buyer's reservation price
1. Suppose that the smartphone market has the demand equation of P= 1,200 - 3.5Qd and the supply equation of P= 450 + 2.5Qs.a. Find the equilibrium price and equilibrium quantity for this market? b. Draw a graph to show this market and compute for consumer surplus, producer surplus, and market surplus. 2. The right-hand side graph shows the hot dog market. Based on the graph : a. what is price elasticity to demand a hot dog from the price of $4 to $1? b.What is the price elasticity of supply for a hot dogs from the price of $1.5 to 4$?
Look at the figure The Market for Hotel Rooms. Suppose the equilibrium price is $110 and the equilibrium quantity is 250. If the local government levies a tax of $30 per night on each hotel room rented, the new equilibrium price will equal_ and the new equilibrium quantity will equal .(explain solving process please) A) $140; 100 B) $130; 150 C) $120; 200 D) $110; 250 Price $140 130 120 110 100 S3 .S₂ S₁ So 100 150 200 250 300 Quantity
PRICE [Dolars per laptop) The following diagram shows supply and demand in the market for laptops. 150 Demand 135 120 105 90 75 60 45 30 15 Supply ° 1 0 35 70 105 140 175 210 245 280 QUANTITY (Millions of laptops) 315 350 Fill in the following blanks with integer values: The market price is The market quantity is The consumer surplus is 4200 The producer surplus is 4200 The total surplus is 8400 A price ceiling is imposed at $60. The market price is now There is now a (surplus/shortage/none) Is there deadweight loss (yes/no)? of what amount? How much if any? If a price floor is implemented at $65, would it be binding? (yes/no)
A). Draw the supply and demand curves for the market of specific good. B). Suppose that the equilibrium price for this product is $4 and the equilibrium quantity is 100 units. If the government imposes a price ceiling of $3 what happens? Draw the new graph explaining how quantities are affected by that decision. C). Suppose that the equilibrium price for this product is $4 and the equilibrium quantity is 100 units. If the government imposes a price floor of $5 what happens? Draw the new graph explaining how quantities are affected by that decision.
7 The equilibrium price of a good is $15. Suppose the government introduces a tax on this good. In this case, the price paid by consumers is 1.4 times more than the equilibrium price, and the price received by producers is 1.2 times less than the equilibrium price. Calculate the amount of tax per good. Enter your answer in the box below and round to two decimal places if necessary.
How do I find the consumer and producer surplus?

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