Demand curve is Q=42-1.5P. The supply curve is Q=5+2P. a) What is the equilibrium price and quantity? b)If you impose a $4 tax on suppliers, what is the new equilibrium price (for both buyers and sellers) and quantity? What is the tax incidence? Show all work, including a graph. c)If you impose a $4 tax on demanders, what is the new equilibrium price (for both buyers and sellers) and quantity? What is the tax incidence? Show all work, including a graph.
Q: Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of…
A: Monopoly is a market condition with a single seller in the economy. The profit is maximized under…
Q: Consider that, in a market, demand function corresponds to general form P = a - b*Q and that supply…
A: The demand function is the mathematical relationship between the quantity demanded and the price. It…
Q: The cost function of a firm is c(y) = 3y2 + 6y + 5. 1. Find the Average variable and Marginal…
A: Average variable cost will be computed by dividing the total variable cost by the quantity. The…
Q: Consider a small country that is closed to trade, so its net exports are equal to zero. The…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: university spent $1.3 million to install solar panels atop a parking garage. These panels will have…
A: The marginal cost implies the increment in production costs generated by the production of…
Q: A man will deposit with a trust company a sum just sufficient to provide his family with an annuity…
A: Given: Interest rate (i) = 4.50% compounded monthlyPMT = Php 750 Year (n) = 15Payment frequency (k)…
Q: 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 D 33-1 E What is the profit if the price is…
A: In perfectly competitive market, firms are price takers so they take the market price as given.…
Q: Draw a graph of a market where a single league (buyer) employs baseball players. Show that the…
A: The equilibrium is established where the demand and supply are equal. Monopsony market exists where…
Q: Determine the level of output of each commodity at which the firm maximizes its total profit.…
A: The profit function of a firm is given in the question. For the maximisation of the profit function…
Q: Assume that the cconomy of Country X his an actual unemployment rate of 7%, a natural rate of…
A: The Phillips curve is a graphical representation of the inverse relationship between unemployment…
Q: "After the epidemic wiped out the economy in March of 2020, the central bank has purchased assets…
A: The "Fed," commonly referred to as the Federal Reserve System, is the nation's central bank. In…
Q: Multiple Choice $439,000 $405,000 $464,000 $456,000
A: Opportunity Cost : When we have 2 options (A & B). And we have to choose one option. Then if we…
Q: Question 7 Here is a question from the Froeb text. I put this her per the requests of students to…
A: Nash equilibrium (NE) is considered to be the answer to the non-cooperative game (NCO). It presents…
Q: Use the information in the following paragraph and Table 1 to answer questions 1 through 10. Assume…
A: Marginal cost is defined as an additional cost incurred by a producer when he produces an additional…
Q: The firms in a duopoly produce differentiated products. The inverse demand for Firm 1 is The inverse…
A: Duopoly is a market structure in which there are only two firms that compete with each other. In a…
Q: 1. The demand for beef in Springania was estimated with the following function using 30…
A: "Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Calculate the present value of a sequence of payments of $1000 made at the beginning of every four…
A: Present value (PV) is the current value of a future payment or series of payments, discounted at a…
Q: 10. A firm uses a single input, labor, to produce output qaccording to the production function qt 8√…
A: Profit maximization is the process by which a firm determines the level of output that will result…
Q: Pls solve for the ordinary annuity of the following: Joe deposits $22,000 at the end of each year…
A: Depending on the risk tolerance of the investor and the amount of funds available, a savings plan…
Q: Suppose that the market price of quinoa is po=2 and the market price of raspberries is pr=1. At…
A: Here the initial endowment are used to calculate the income of the Dylan and this is the endowment…
Q: Suppose Alex’s utility function for apple and orange is U(a,o) = a^2o. The price of an apple is $ 4,…
A: Given Utility function Ua,o=a2o .... (1) Price of apple pa=$4 Price of orange…
Q: = = 4q and k2q. Which 12. Suppose a company has the following contingent demands l of the following…
A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…
Q: 1. Assume that the economy is in a steady state and there is an unexpected permanent increase in the…
A: You are assuming that the economy is in a steady state and there is an unexpected permanent increase…
Q: Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts…
A: Initial Investment = 5000 R-E = 1200 per year
Q: The following three mutually exclusive alternative proposals are being considered for flood proofing…
A: Equivalent annual cost (EAC) is the yearly cost of owning, operating, and maintaining an asset over…
Q: 2. Suppose that there are two groups of people in the economy. In group j, individual i accumulates…
A: Income inequality means the uneven distribution of income among the different sections of the…
Q: In an industry with two firms, their best responses are Q₁ = 10 — Q₂ and Q2 1 = 8-Q₁. What is the…
A: Since the industry has two firms so this is the case of the Cournot duopoly model in which each firm…
Q: The labor supply curve is the relationship between the wage level and the quantity of labor that…
A: The labor market refers to the market in which workers offer their services to employers in exchange…
Q: A manufacturer has been selling 1100 QLED televisions a week at $540 each. A market survey indicates…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: assuming a 10-year investment horizon? 13. Redo Q7 and Q8, assuming that the bonds have semiannual…
A: Bonds issued to the general public helped corporations and governments raise finance. It is a debt…
Q: The table below shows the export and import values of automobiles, pharmaceuticals and clothing in…
A: Intra-industry trade implies countries involved in both the export and import of the same type of…
Q: Assume a two-sector economy model is given by: Y = C + I, C = 97 + 0.7Y, I = 180 – 125i M s = 255,…
A: LM curve shows the combination of levels of D and S of money and an interest rate at which a money…
Q: What is consumer surplus? What is the change in consumer surplus? Why it is important in estimating…
A: Surplus is an important concept in economics as it provides insight into the efficiency of markets…
Q: The Ford Motor Company has redesigned its best selling truck by substituting aluminum for steel in…
A: The present worth of a cash flow refers to its value at present in accordance with its value in the…
Q: Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation Mining sells 10% of…
A: An equilibrium is defined as a state of rest. It is determined at a point where the market forces of…
Q: Suppose the government decides to transfer money to households in their bank account. What will…
A: If the government transfers money to households' bank accounts, the overall money supply in the…
Q: n Avenger City, there are various fried chicken consumers withFea es like Captain America, Thor and…
A: Note: “Since you have posted multiple questions with multiple sub-parts, we will provide the…
Q: According to Okun's law, how much output (real GDP) was lost in 2009 when the nation's unemployment…
A: Okun's Law: Okun's Law is an empirical study about the U.S. economy, suggested by economist Arthur…
Q: benefit of human development index
A: Introduction Human Development index is defined as the measure of average achievement of the…
Q: Demand and Supply scenarios - For the next 4 questions, answer the following questions: Label axis…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: What voter ID policy would result in the most free and fair electoral process?
A: The answer to this question is highly dependent on various contextual factors, including the…
Q: Your savings account balance at the end of May was $500. You made a $200 deposit on June 4 and…
A: Average Daily balance in June = sum of daily balance in june / total number of days in June
Q: Quantity Demanded (in kgs) 100 90 80 70 60 50 40 Price (Php) 50.00 60.00 1. Plot and graph the data…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: 1. Give an example of a market (it can be of any good or service).
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: could you add me some differences or clarification
A: An economic model called the Ramsey model examines the ideal amount of spending and saving over time…
Q: What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two…
A: Behavioral economics is that branch of economics that deals with the psychological and emotional…
Q: Exercise 3.1 A publisher must take a decision on the pricing of a new book based on the following…
A: Cost is the payment in the production process in such a way that rent, wages, interest, and profit.…
Q: The demand for labor by an industry is given buy the curve L = 900 - 20w, where Lis labor demanded…
A: Given information: L = 900 - 20w ---------> Labor demand. L = -100 + 20w ----------> Labor…
Q: three examples of what economists might consider "good" monopolies throughout history. Why were they…
A: A monopoly is a market arrangement where one company or other organization controls the production…
2. Demand curve is Q=42-1.5P. The supply curve is Q=5+2P.
a) What is the
b)If you impose a $4 tax on suppliers, what is the new equilibrium price (for both
buyers and sellers) and quantity? What is the tax incidence? Show all work,
including a graph.
c)If you impose a $4 tax on demanders, what is the new equilibrium price (for both
buyers and sellers) and quantity? What is the tax incidence? Show all work, including a graph.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- 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.The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight lossC). 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. D). Now, consider that the government imposes a tax of $0.50 on sellers. Show what happens to the initial equilibrium price of $4 and draw the new quantity on the graph. E). The government imposes a tax of $0.50 on buyers. Show what happens to the initial equilibrium price of $4 and draw the new quantity on the graph. F). Explain how the burden of the two different taxes (as seen in C and D, above) is divided between buyers and sellers. G). If you are a buyer in these cases, would you prefer a relatively elastic or inelastic demand curve compared to the supply curve? Why? H). If you are a seller in these cases, would you prefer a relatively elastic or inelastic supply curve compared to the demand curve? Why
- The demand and supply equations for a product are: Q* = 0.2 300 – 6P and Q' = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.Please written by computer source Suppose that the demand curve for a product is given by Q = 100 −10p and the supply curve is Q = 10p. Assume that income effects (elasticities) are small so consumer surplus is a good measure of consumer welfare. (a) What is the equilibrium price and quantity with no distortions? (b) The government imposes a tax of $2.00 per unit sold. What is the new equilibrium quantity? Sketch the market equilibrium in a graph. (c) Given the tax what is the change in consumer surplus? What is the change in producer surplus? What is the change in government revenue? What is the net Dead Weight Loss from the tax? (d) Say the government proposes to use the revenue from the tax to pay for snacks in our last ECON 312A lecture. The total social benefits from the snacks would be $82.00. Will the tax increase overall welfare if the revenue is used to buy the snacks? What is the dollar value of the net gain or loss to society?Suppose buyers of fountain drinks are required to send $0.50 to the government for every fountain drink they buy. Further, suppose this tax causes the effective price received by sellers of fountain drinks to fall by $0.25 per fountain drink. Which of the following statements is correct? a. The price paid by buyers is $0.25 per drink more than it was before the tax. b. This tax causes the supply curve for fountain drinks to shift downward by $0.50 at each quantity. c. This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity. d. Forty percent of the burden of the tax falls on buyers.
- Question 3 Suppose the demand for a product is given by Q-100-5P, where Qp is quantity per year measured in kilogram and P is the price in AUD per kilogram. The supply curve for this product is given by Qs=4P-8. Answer the following questions and provide a graph illustration. a) Determine the equilibrium price? b) Calculate the elasticity of demand and supply at the equilibrium price. c) Determine the consumer surplus and producer surplus at the equilibrium price? d) Suppose that the government imposes a floor price of A$15 and promises to buy any surplus (e.g., Q³- QD) on the market. Determine the new consumer surplus, the new producer surplus, and the government expenditure of this policy e) Instead of using the floor price, now the government imposes a A$3 tax on each kg sold, determine the market price after having this tax policy. f) Calculate the consumer surplus, producer surplus and tax revenue. g) Using the concepts of demand and supply elasticity, predict which party, the…1. Suppose that the demand curve for a particular high-end designer purse in a medium-sized city is given by P = 600 – 0.01Q? and supply is P= 100+0.04Q², where price is in dollars and quantity is in numbers of purses. a. Find the equilibrium price and quantity. b. Calculate the consumer and producer surplus at the equilibrium price. inThe table shows the quantities of beer supplied and demanded (in millions of six packs) at different prices ($ per six pack) in an unregulated market with no tax. Suppose a tax of $5 per six pack is collected from sellers of beer. Assume that the demand curve and the supply curve are straight lines. Quantity supplied Quantity demanded Price $4 28 $8 24 24 $12 40 20 With the tax in effect: The equilibrium price of beer is $ per pack (enter a whole number, example: 10) The equilibrium quantity of beer is million packs (enter a whole number, example: 10) The buyers' share of the tax is $ A per pack (enter a whole number, example: 10) The sellers' share of the tax is $ per pack (enter a whole number. example: 10)
- Suppose the price elasticity of demand for smartphones is 0.5 (absolute value), while the price elasticity of supply is 1.9. If the government imposes a per-unit tax of $100 on the sellers of smartphones, how will the price and quantity transacted of smartphones change? Will the sellers or the buyers bear a larger tax burden? Will the market be able to achieve economic efficiency after the tax is imposed? Explain with a diagram.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.Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, what happened to producer surplus in the market? A B Producer surplus increased from $12.5 million to $49 million. Producer surplus increased from $12.5 million to $24.5 million. Producer surplus increased from $3 million to $7 million. Producer surplus increased from $4.2 million to $5.6 million. C D
