Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at aprice of $50 per pound.100-95-Use the line drawing tool to draw a new supply curve reflecting a $10 per pound tax, Label this line 'STax.90-85-Carefully follow the instructions above, and only draw the required object.80-7570-65-60-5545-4035302520-1510-10Quantity (thousands)tv30ear AlIGer MoreHOInTeach MeText PagesMacBook AirDIIF1080F8F7F6F5F4escF2F3F1$%&!@6783410 PWERTYQ....

The tax shifts the supply curve to the left and up. The curve shifts up vertically by $10.

Answered: Consider the graph at right. Assume…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 3TY

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1. Consider the following figure to answer the following four questions. (Please note that the numbers on the vertical axis are 0, 5, 10, 15, 20, 25, and 30 and on the horizontal axis are 0, 10, 20, 30, 40, 50, and 60.) Excess Supply and Demand ww 1 54000 $25.00 530.00 $15.00 $100 30.00 Excess Supply B C Excess Demand D 1A. What is the price level at C and D? 1B. What is amount of excess demand between C and D at that price level? (Assume that at D the number is half way between 20 and 30 on the horizontal axis). (Show your math works.) 1C. What is the price level at A and B? ID. What is the amount of excess supply at that price level? (Assume that the quantities represented by A and C and between B and D are same) (Show your math works.)
1. Retail Promotion Programs Successful retail promotion programs have the capacity to generate additional producer surplus, but it depends en the size of the relative shifts in demand and supply. Please sketch out a supply and demand figure for RTE breakfast cereal sold in retail markets that adopt a promotion campaign; this program increases demand and also leads to an increase in advertising cests that is paid for by the retailer. Now assume (and label your figure) with the following: the initial equilibrium quantity was 100,000 boxes, the quantity with the promotion in place is 105,000 boxes, the initial price was $10 per box, the price with the promotion in place is S10.15 per box, and initial fixed costs were $2 per box. Would the promotion efforts be worthwhile to retailers if: a) b) c) The promotion was funded by a $0.20/box fee? A S0.50 fee/box? A S0.60 fee/box?
1. Use the data from the chart above. If you are a seller in this business, what would happen tomarket supply if the government sets a price ceiling below P30?
A4 Suppose that good X is traded in a competitive market. The market clearing price is $25.00 and the quantity supplied is 200. A proposed change in government policy is expected to cause the market price to increase by $1.50. Previous studies suggest that the price elasticity of supply is about 1.5. Assuming the supply schedule is linear, calculate the change in producer surplus from the government's policy shift. Round your answer to 1 decimal place and report it in the box below. Don't include the dollar sign, but if producer surplus decreases, be sure to include a negative sign in your response. your answer is
The market for commodity Z was at equilibrim before tax at price Ksh. 50 per unit sold and the quantity was 5000 units. Suppose own price elasticity of demand is 0.6 and the elasticity of supply is 1.1 After the government announced tax measures the new market price increased to Ksh. 70 per unit. Calculate the equilibrium price and quntity after tax Calculate the seller and buyers burden, Explain
Price 20 18 16 14 12 10 х $1.200 0 300 400 500 $2.000 S1 SO Quantity Assume that the market in the graph above is at an initial equilibrium price of $10 and an equilibrium quantity of 500 units. If the government decides to add a $4 per-unit tax on this good, it will be able to collect the following amount of tax revenue: Demand 1000
QUESTION 1o Governor Kathy Hochul doen not like rabbits, She has decided to institute a $50 tax on rabbits, effective immediately. The existing supply and demand for peot rabbits in NYS was as follows prior to the tax: Supply: P9+ 0.40 Demand: P-75 - 0.40 How many rabbits are sold in the state atter the tax was implemented?
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7.04 Review Suppose a tax of $20 is placed on televisions. If this market's supply and demand curves' are elastic, the burden of this tax falls on: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the sellers b the buyers both the sellers and the buyers.
4.Which of the following will cause the supply of a product to decrease? a) governent subsidy for the product b)an increase in consumer' income c) a decrease in the price of the product d)an increase in the excise tax on the product
Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $20 per pound tax. Label this line 'S Taxi Carefully follow the instructions above, and only draw the required object. (Enter all responses as whole numbers) The new price consumers will pay is $ and ……… Price 100- 95- 90- 85- 80+ 75- 70+ 65- 60- 55- 50+ 45- +3828== 40+ 35- 30- 25- 20+ dit 154 104 5- d 0- 0 1 2 7 3 4 5 6 Quantity (thousands) STax -00 8 S D Fox 9
Consider the graph at right. Assume that before any tax, firms were willing to supply 5 thousand pounds of lobster at a price of $50 per pound. Use the line drawing tool to draw a new supply curve reflecting a $30 per pound tax. Label this line Carefully follow the instructions above, and only draw the required object Price 90 85 70 65. 65 40 55- 50 19 45 40 35 30 25 20 15 10 54 0 0 1 Quantity (thousands) www 8 10 ddu

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