In this problem, p is the price per unit in dollars and q is the number of units. If the demand and supply functions of a product are p = 6500 − 5q − 0.7q2 and p = 500 + 10q + 0.3q2, respectively, find the tax per unit t that will maximize the tax revenue T. t = $ /item
Q: The market for N-95 masks is perfectly competitive. Market Demand is given by Q-321-2P and Market…
A: First we need to solve for the equilibrium price and quantity.…
Q: Price Amount Requested (Unit) Amount Offered (Unit) (IDR) 2400 2000 120 180 160 150 Based on the…
A: We derive the demand and supply curves first. Amount requested refers to quantity demanded and…
Q: Suppose demand and supply of gasoline are given by the following linear functions: Qd = 100 - 20P QS…
A: Deadweight loss is the decrease in total surplus when socially efficient quantity is not produced.…
Q: The tax-inclusive price of a carton of cigarettes in Canada is $100 per carton. Per capita…
A: Per capita tax revenue is the amount of tax amount collected by government on per person , this is…
Q: The market for N-95 masks is perfectly competitive. Market Demand is given by Q=464-2P and Market…
A: Given : Demand :Q = 464 - 2 P Supply : Q = 5P
Q: Given the following information Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the…
A: Equilibrium or stable point is found where the demand(dd) curve and the supply(ss) curve cut each…
Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…
A:
Q: Suppose the following demand and supply function of a commodity.…
A: Given: Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P
Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…
A: We are going to solve for tax revenue maximisation to answer this question.
Q: 9. The demand and supply functions for product x are given, respectively, by the equations: P-83.6-…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: b) Consider the following demand and cost functions TC = Q² + 6Q P = 25 – 3Q Suppose the government…
A: Profit maximization refers to the production and distribution of goods in such a way that maximizes…
Q: Market demand for Mandrake roots is given by Q=417-5P and market supply is given by Q=2P. The…
A: Market is equilibrium where Demand is equal to Supply but after tax either supply curve shift or…
Q: The demand function for beef is Qd = 100 – 3P and supply function for beef is Qs = 10 +2P. Price…
A: (ii) Qd = 100 – 3P Qs = 10 +2P As government introduces a specific tax of N$0.25 per kg. Therefore,…
Q: Market demand for Mandrake roots is given by Q=417-4P and market supply is given by Q=3P. The…
A: market Equilibrium is that condition where demand and supply both are equal but after imposing tax…
Q: The annual demand for imported oranges is given by the following equation: QD = 600,000 − 30,000P…
A: The market demand for imported oranges is given by the equation: QD=600000-30000P and the imported…
Q: Example 5. Maximizing Tax Revenue. Suppose the demand and supply functions for a product are p =…
A: The government imposes taxes to correct the market failure caused in a free market and thereby…
Q: Given the following information Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the…
A: Answer- we have given, quantity demanded equation and quantity supplied equation. We know that at…
Q: Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P…
A: Answer to the question is as follows :
Q: The demand function for beer is given below, where p is the retail price and D(p) is the demand in…
A: The elasticity of demand (Ed) is an economics term that represents the responsiveness (sensitivity)…
Q: Determine government revenue and dead weight loss after tax.
A: Taxes are imposed on individuals or companies involuntarily to fund government operations by a…
Q: Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P…
A: Given, Qd = 240 - 5P Qs = P Tax on supplier = $12 per unit
Q: Suppose that in a certain market the demand function for a product is given by p= -8q + 2800 and the…
A: We find the equilibrium Price and Quantity after the tax levied -
Q: The inverse demand for table salt is p = 200qd+1 , while the inverse supply of table salt is p =…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The demand and supply functions of shirts are given by; Demand function: P = = 50 – 1.5Q Supply…
A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…
Q: The following graph represents the demand and supply for pinckneys (an imaginary product). The black…
A: Since the given graph is not visible properly therefore below is the edited graph:
Q: The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 -…
A: According to the question, The demand and supply functions for a product is given. Demand…
Q: In a market, the demand function is given by the equation Q = 150 - P and the supply function is…
A: Q = 150-P ----------> demand equation Q = -30 + 3P -----> supply equation At equilibrium,…
Q: It's a specialized market, so we'll just have to assume we have enough buyers and sellers to have…
A: Equilibrium is achieved at the output level where Qs=Qd
Q: In this problem, p is the price per unit in dollars and q is the number of units. If the weekly…
A: Answer: Given, Demand function: p=128-2q2 Supply function: p=20+9q After-tax the price received by…
Q: as a result of a $6 per unit tax imposed on this product, consumer surplus changes from:
A: Consumer surplus is the difference between the maximum price consumer is willing to pay and the…
Q: The demand for the product S is Q = 500 – 8P and its supply is Q = 200 + 4P. The good is currently…
A: Demand function = 500-8PSupply function = 200 + 4P Excess burden is the deadweight loss caused by…
Q: The short-run market demand and supply curves for good X are as follows: QD = 20 - 4P QS = 7 +…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of…
A: Taxes are part of the government revenue and it will implement in various forms.
Q: Excise taxes are usually imposed on products with elastic demand. False True
A: Excise taxes are per unit tax on a commodity.
Q: Each of the 10 firms in a competitive market has a before-tax cost function of C=25 +g. The market…
A: Given Information C = 25 +q2 Q = 720 - P t = $4.80 So, MC = 2q P = MC P = 2q q = P/2
Q: The following graph represents the demand and supply for pinckneys (an imaginary product). The black…
A: Equilibrium quantity and supply is determined where the quantity demanded is equal to the quantity…
Q: The demand (D) and supply (S) function for a commodity are P=100 - 20 and P= 10 + Q, respectively.…
A: Given Demand : P = 100-2Q Supply : P = 10+Q Equilibrium QUANTITY = 100-2Q = 10+Q…
Q: Suppose that the demand and supply functions for good x are given as follows: Q = 120 – 2P, + I + P,…
A: Correct: third option is correct We will first equilibrium price where demand = supply and then…
Q: The efficiency loss of imposing an excise tax is due to: a. Paying a higher price per unit. b.…
A: The efficiency loss occurs due to the over production or underproduction. On the other hand, an…
Q: Refer to Figure 4-4. The per unit burden of the tax on buyers is a. P2 minus P0. b. P2 minus P1.…
A: Given: D is the demand curve, S is the supply curve, P1 and Q1 are equilibrium price and quantity…
Q: In a given market demand and supply behaviour is characterized by the following functions: D^(-1) :…
A: Tax refers to the sum of money given by the consumers or producers to the government of nation when…
Q: Suppose an additional "special" tax of $0.10 per litre is imposed on the sale of gasoline in one…
A: Here, before tax price is $1.30 and after the imposition of $0.10, new price is $0.38.
Q: The greater the price elasticity of supply and demand, the more the market volume decreases when…
A: Price elasticity of supply and demand determine the incidence of tax.
Q: Based on the following supply and demand functions P=0,+8 and P = -3Q, +80, If the government…
A: P = Qs +8 P = -3Qd + 80 For equilibrium, Demand = Supply Qs +8 = -3Qd + 80 4Q = 72 Q = 18 units…
Q: Each of the 10 firms in a competitive market has a before-tax cost function of C=25+q°. The market…
A: Given: Number of firms=10 C=25+q2Q=720-p Tax=$4.8 per unit To find: Quantity per firm
Q: Suppose that in a certain market the demand function for a product is given by p = −8q + 2800 and…
A: Given information- Demand function: p=-8q+2800 Supply function: p=3q+45 Tax = $5 on the supplier…
In this problem, p is the
If the demand and supply functions of a product are
respectively, find the tax per unit t that will maximize the tax revenue T.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes.The demand and supply functions for product x are given, respectively, by the equations: P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price paid by the buyer before the imposition of tax?If a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the suppliers or demanders? a) Demanders b) Suppliers c) Both share the burden equally d) Can't tell from the available information
- In this problem, p is the price per unit in dollars and q is the number of units. If the weekly demand function is p = 128 – 2g2 and the supply function before taxation is p = 20 + 9g, what tax per item will maximize the total tax revenue? /itemSuppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose at the market equilibrium, the price elasticity of supply is 5/9 and the price elasticity of demand is 10/9. Approximately what proportion of a small per unit tax will be paid by consumers?The demand and supply functions for product M are P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax per units is levied to the producer. Question: What is the P received by the seller after the imposition of tax? and how much will be the tax burden on the part of the producer after the imposition of tax? How much will be the tax burden in the part of buyer on the other hand?
- The demand (D) and supply (S) function for a commodity are P=100 - 20 and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes. [In order to insure that we all do this problem in the same way, let's assume that the tax is imposed on the supply side of the market. In addition, the burden of the tax on demanders is the difference in price demanders pay when the tax is in existence less the price they paid when there was no tax. The burden on suppliers is the difference in price suppliers received when there was no tax and the net price (after remitting tax to the government) they receive when the tax is in existence.]The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes. [In order to insure that we all do this problem in the same way, let’s assume that the tax is imposed on the supply side of the market. In addition, the burden of the tax on demanders is the difference in price demanders pay when the tax is in existence less the price they paid when there was no tax. The burden on suppliers is the difference in price suppliers received when there was no tax and the net price (after remitting tax to the government) they receive when the tax is in existence.]The inverse demand for table salt is p = 200qd+1 , while the inverse supply of table salt is p = 10+ 2qs. a. Find the equilibrium price of table salt before AND after the imposition of a 40% ad valorem tax on the consumers of table salt. b. Describe the distribution of the burden (incidence) of this ad valorem tax between consumers and producers. c. Find and interpret the price elasticity of supply (es) at the after-tax equilibrium price and quantity.
- Excise taxes are usually imposed on products with elastic demand. False TrueA project requires signing buying 500 cubic yards of concrete per week for the next year from the only local provider. The currently price is $100 per yard and the provider sells 5,000 yards per week. Assuming marginal cost is constant, elasticity of demand at the current price is -1.5.The METB (marginal excess tax burden) is 0.2. a) find opportunity cost of the weekly government purchase (Opportunity Cost = Total Revenue – Economic Profit) b)find original demand and the new demand (Qd = a – b(P)) C)find the new price, and the new quantity purchased by those other than the government in the process.The demand for a product is given by p + 2q = 250 and the supply by p - 4q = 100. a) Find equilibrium values. b) If a flat-rate tax is imposed on each unit sold, find the optimal tax and the maximum possible tax revenue. Verify that tax revenue is maximum.
