20 1+Py-4t+2s-4f|Suppose that the demand and supply functions for good x are given as follows: Q = 120 – 2P, + I + P,and Q = -30+ P, - 21 + s – 2 f where P denotes the price of good x, P, denotes the price of a relatedproduct y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices.What is the equilibrium quantity of x as a function of exogenous variables P, I, t. s and f?I+Py-4t+2s-4ƒ= 40 +I+Py+4t+2s-4f20 +3LE.www3- 40+I-Py-4t+2s-4f3

Correct: third option is correct We will first equilibrium price where demand = supply and then…

Answered: Suppose that the demand and supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the demand and supply functions for a good are given as follows: Demand: 0-720-8P Supply: Q =-160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 0.5 1.25
Suppose that the demand and supply functions for good x are given as follows: Q= 120 - 2P +I+P, and Q =-30+ P,- 21+s-2f where P, denotes the price of good x, P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. What happens to the demand and supply of good x as Income falls? Demand shifts to the right while supply stays the same. Demand shifts to the left while supply stays the same. No change in Demand and Supply. Both supply and demand shift to the left.
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 (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.]
Suppose that the demand and supply functions for good x are given as follows: Q = 240-2P, +1-P, and Q - -30+ P-21 +8-25 where P, denotes the price of good x. P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices What is the equilibrium quantity of x as a function of exogenous variables P, .I. t. s and f eqb Qeqb Qeq = 60 + = 90 + = 1+Py-4t+2s-4f 3 90+ 1-Py-4t+2s-4f 3 eqb Qx = 60 + 1-Py-4t+2s-4f 3 1+Py+4t+2s-4/ 3
Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 –8P Supply: Q = -160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 8 4. 0.5 1.25
3) Consider a commodity X whose demand function is 100-2P and which has a perfectly elastic supply curve. Initial price of the commodity is 40 $ . When the government puts a subsidy of 10% on X answer the following by drawing a graph a) Find the price after the subsidy. b) How much does the government pay as subsidy? c) Is there excess burden? If so, how much?
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.]
Suppose that the demand and supply functions for good x are given as follows: Q=120-2P, +I+P, and Q=-30+ P₁ - 2r+s-2/ where P, denotes the price of good x, P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. What happens to the price and quantity equilibrium of good x as Income falls? Price equilibrium falls while quantity equilibrium rises. Both equilibrium price and quantity fall. Price equilibrium rises while quantity equilibrium falls. Both equilibrium price and quantity rise.
4) The demand and supply functions of shirts are respectively given by; Q = 200-5P and Q =-120+10P %3D a) Find the equilibrium price and quantity b) If a tax of GHC8.00 per unit is imposed calculate the equilibrium price and quantity c) What is the distribution of tax to the consumer and the producer? d) Analyse the introduction of price minimum of GHC20 on the good in the market e) Calculate the values of consumer and producer surplus at the market equilibrium f) If the total cost of the firm is TC = 0.8Q²+30Q-5, find the quantity to be produced at the break-even point
Given the supply - demand function of printers in Vietnam as follows:Sx = -20000 + 250PDx = 160000-350PKnowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece.a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case?b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam.c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P Dx 160000-350P Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece. a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case? b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam. c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?

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