Suppose that the demand for a good is described by the inverse demand function p = 10 - 3q and the supply of the good is given by the inverse supply function  p = 2 + 2 q: Q:Determine the incidence of the tax, who bears what shares of the tax (in percentage)?

Q: 1. The government imposes a $1 per unit tax on suppliers.What price will the buyers pay after the $1…

A: Equilibrium in economics is the state of stability and balance. Any deviation from this level will…

Q: The government is considering levying a tax of $60 per unit on suppliers of either concert tickets…

A: The term “deadweight loss” is defined as a decline in the total surplus due to market distortion…

Q: Consider the following demand and supply functions. Demand: D(p) = q = 182 – 12p and Supply: S(p) =…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Sales taxes are usually collected from sellers, who view the tax as A) an addition to profit. B) an…

A: Sales tax: - Sales tax is the imposition of some charges by the government of a country on the sale…

Q: Assume the following linear demand and supply functions of a good respectively, Q=20-P and Q=-2+P,…

A: In the free market, the equilibrium price and quantity are determined by the forces of demand and…

Q: In a competitive market the equilibrium price, P, and quantity, Q, are found by setting QS = QD = Q…

A:

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: When a government intervenes in a free market, it generally leads to market inefficiency because it…

Q: Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the…

A: The tax incidence analysis consists of deciding who is the economic entity that bears the expense of…

Q: Demand for apples is given by the function P=50-4q while supply is given by P=10+q. If a per-unit…

A: Per unit tax will increase the price by 15, thus the new supply equation will be given by  P = 10 +…

Q: A fixed tax on a product implies that the consumer is the one who ends up bearing the full burden of…

A: When tax is implied on the product then it is sure that tax will be a burden that is shared among…

Q: Assume that the demand for food is relatively inelastic and the demand for jewelry is relatively…

A: Answer: If the same tax is imposed on the goods having elastic and inelastic demand then the good…

Q: Assume that the price of soft drinks is $5 and the government decides instead to impose a $1 tax per…

A: Here, the price of soft drinks is given as $5 and the government imposes a $1 tax on producers. It…

Q: he inverse supply function for gum is PS = 4 + QS. The inverse demand function for gum is PD = 16 -…

A: when tax is placed on suppliers, less output is produced which is represented by the leftward shift…

Q: Suppose that a market is described by the following supply and demand equations: QS= 2P QD= 300 - P…

A: Since you have posted questions with multiple sub-parts, we are answering the first three parts for…

Q: Suppose the demand curve for gasoline is more elastic than the supply curve for gasoline.  If the…

A: This can be explained by a graph below:

Q: Find the consumer and producer tax burden. e) Calculate the tax revenue that the government…

A: The tax Shifts the supply curve to the left and decreases supply which decreases the quantity and…

Q: Question No 01. Suppose Suzuki has the following demand and supply function for Cults VXL: Qd = 55 -…

A: Equilibrium occurs when demand = supply

Q: The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q,…

A: Supply: It refers to the goods and services which have been supplied in an economy at a time. The…

Q: market. Determine demand and supply equation after tax Given the following information: QD = 240 –…

A: QD (Quantity demanded) describes the TA (total amount) of commodity or services that a person DD…

Q: Suppose the supply curve for cars is more elastic than the demand curve for cars.  If the government…

A: Tax incidence can be shifted only through sale and purchase transaction.  Share of tax borne by the…

Q: If the government wants to impose the tax that is more efficient, it should tax CONCERT OR BUS…

A: The higher the price elasticity of demand or supply, the higher is the dead weight loss. The lesser…

Q: Suppose the inverse demand curve for good X is given by the equation Px=10-Qx/10 and the supply…

A: 1. Px=10-Qx/10 Supply curve will be perfectly inelastic at RM1.    If a tax of RM2 is applied on…

Q: Suppose the market for soft drinks is given by: Demand: P = 181 - 1.7Q Supply: P = 1.3Q The…

A: Government imposes tax to reduce the equilibrium quantity and achieve its objective of reducing…

Q: Question 2 Show graphically the following. Suppose leisure is a normal good. If we replace one…

A: The trade-off between leisure and work is dependent on the income levels and the taxes imposed on…

Q: Comparing the market for Airbnb rentals for the two years is complicated by the fact that the graph…

A: The equilbrium price and quantity of a good sold in the market are determined by the forces of…

Q: The government is considering levying a tax of $120 per unit on suppliers of either leather jackets…

A: Deadweight loss is caused due to the inefficiency in the market. It occurs when the equilibrium for…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: Suppose a tax is imposed on a product that has a completely inelastic supply curve. Who pays the tax

A: Elasticity of supply curve depicts how much producer responds with the change in the price level.

Q: Suppose that the price of rice is Tk.65 per kg and 75,000 kg of rice is consumed in equilibrium. A…

A: The excess burden of taxation, also known as the dead weight loss of taxation, is the economic loss…

Q: The local government decides to impose a sales tax on some selected items. On item X the final…

A: No, It's not a violation of the law of demand

Q: Suppose that the supply of oil is elastic and demand for oil is inelastic. If the government taxes…

A: Buyers will bear most of the burden of tax.

Q: Suppose Suzuki has the following demand and supply function for Cultus VXL: Qd = 55 - 5P…

A: Given: Demand function: Qd = 55 - 5P Supply function: Qs = -50 + 10P Demand function after tax: Qs =…

Q: The Health Ministry is evaluating the data of the soft beverages market.   Demand function:…

A: QD=270−4P QS=−70+4P     Equilibrium: QD = QS −70+4P = 270−4P P = 42.5  Thus, Q = 100    Consumer…

Q: Suppose that the demand for a good is described by the inverse demand function p = 10 - 3q and the…

A:

Q: Given the demand and supply equations below, show the burden of a 50% tax on the producers. What is…

A: Answer -

Q: Complete the following table with the tax revenue collected and deadweight loss caused by each of…

A: Tax Revenue from leather jaket = (140-60)x150…

Q: A specific tax will be imposed on a good. The supply and demand curves for the good are shown in the…

A: The term "tax incidence" (or tax incidence) refers to how a tax burden is distributed across…

Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…

A: Given,  The demand curve, QD = 240 – 5P The supply curve, QS = P Tax amount = T= $12

Q: The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q,…

A: a. Equilibrium price = $40 Equilibrium quantity = 30 b. Tax burden on demander = $2

Q: Part a, b, c

A: Hi, since you have posted a question with multiple sub parts, we will be answering only first three…

Q: Given an inverse demand equation of P = 50 - 0.5Q and an inverse supply equation of P = 0.333Q, a.…

A:

Q: The inverse supply function for pizza is: pS = 1 + QS %3D The demand function for pizza is: pD = 19…

A: Here we calculate the number of pizza after tax by using the given demand and supply function and…

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…