.Given the following information Qd= 240 – 5p Qs= P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. What is the buyer’s price after tax?

.Given the following information Qd= 240 – 5p Qs= P Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. What is the buyer’s price after tax?

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

See similar textbooks

Related questions

Q: Consider a market where demand and supply satisfy the following equations QD = 12 – 2 P,…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity…

A: A tax refers to a monetary obligation that individuals are bound to pay as producers or consumers to…

Q: Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the…

A: The elasticity refers to the responsiveness of the quantity demand due to change in the price. If…

Q: Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first 3 sub…

Q: Consider a market where demand and supply satisfy the following equationse QD = 12 – 2 P, Qs = 2P.…

A: QD = 12 - 2P QS = 2P At Equilibrium QD = QS 12 - 2P = 2P 12 = 2P + 2P 12 = 4P 3 = P Put the value…

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

A: Given,

Q: Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the…

A: The equilibrium is established when demand and supply are equal or Qs = Qd The Qs will undergo the…

Q: What happens to the market equilibrium price and output when tax is imposed on the buyers? Is the…

A: Taxation refers to the compulsory charge imposed by the government on the users of certain goods,…

Q: 1. In the market for beer, Qd = 100 - P Qs = 3P The government decides to levy a $3 tax on…

A: When a per unit tax is levied on suppliers, it will shift the supply curve up by the amount of tax.

Q: Question 21 - part 2 Given the following information 2D 240-5P where QD is the quantity demanded, QS…

A: Answer to the question is as follows :

Q: Consider a market with an equilibrium quantity of 100 and an equilibrium price of $40. Suppose the…

A: In the market, equilibrium occurs at the intersection point of market demand and market supply…

Q: Suppose the coffee market in the US is given by the following equations for supply and demand: Qs =…

Q: Suppose demand for good X is given by QD = 900- 1/2P where p is the price and QD the quantity…

A: Given: QD = 900- 1/2P QS = 1/4P tax is imposed on each unit of X (t) = 60 Tax reduces suppliers…

Q: The market for skateboards currently has no taxes. The equilibrium quantity is 5,000/month, and the…

A: If the government is imposing the tax in the market of the skateboards that will lead to a decrement…

Q: Do you think profit could be maintained if the tax burden were simply passed on to the consumers in…

A: The division of a tax burden across stakeholders, such as buyers and sellers, and producers and…

Q: In the market for cotton, the quantity demanded, and quantity supplied are expressed mathematically…

A: Price ceiling is the maximum price that can be charged. It is binding if it is set below equilibrium…

Q: The demand and supply equations for a product are: Q= 300 — 6P and Q.= -40 + 6P. Determine the…

Q: GIVEN THE FOLLOWING QD=240-5P QS=P WHERE QD IS THE QUANTITY DEMANDED, QS IS THE QUANTITY SUPPLIED…

A: Market equilibrium Qs=QdP=240-5P6P=240P=240/6=$40per unit Qd=240-5P=240-5×40=240-200=40 units New…

Q: Daniel and Jacob like soda drinks. Jacob's demand for soda is: P=10-Q; the demand for Daniel is…

A: Demand and supply forces in the market interact to give the market equilibrium condition. A tax…

Q: Suppose now that the government decides to increase the number of quotas available to 72 units, but…

A: Consumer Surplus: It refers to the level of welfare that consumers get, or it is the difference…

Q: What is the effect of a $1 specific tax collected from producers on equilibrium price and quantity…

A: The demand for various goods, and services, and the supply of various goods, and services in the…

Q: In a particular market, the supply is elastic and demand is inelastic. If a tax is imposed on the…

A: In the graph the initial equilibrium is at E where D intersects with S and the equilibrium price is…

Q: The figure below shows a market of good X. Suppose that the government levied the tax of 30 on X.…

A: The given figure shows the demand and supply curve. The equilibrium price and quantity is given at…

Q: Suppose that the market demand for coffee is Pd = 15 – Qd and the market supply is Ps = Qs – 5. What…

A: In each market, the equilibrium price is the one where supply and demand are equal.

Q: Given the following information Qd = 240 – SP Qs = P Where Qd is the quantity demand, Qs is the…

A: With the introduction of tax the price paid by consumer increases whereas the price received by the…

Q: Question 3 Given the following information QD =240-5p QS = p Where QD is the quantity…

A: Given:Tax=$12QD=240-5pQS (after tax)=p-12

Q: GIVEN THE FOLLOWING QD=240-5P QS=P WHERE QD IS THE QUANTITY DEMANDED, QS IS THE QUANTITY SUPPLIED…

A: After the imposition of tax the consumer surplus declines as price paid by consumer increases…

Q: i. Find the equilibrium price and quantity demanded and supplied before the tax. ii. Which of the…

A: We will answer only the first three parts, as no question number is mentioned here.

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

A: The demand and supply are given and the tax rate charged on the sellers is given to be $12. Thus,…

Q: Question 10 Price Supply P3 P2 F G P1 Demand Quantity 01 Q2 Refer to the graph above. Suppose the…

A: When government imposes a tax, it generally lead to arise deadweight loss and the yas burden is bear…

Q: Question 2e - part 3 Given the following information QD- 240 - 5P QS- P where QD is the quantity…

A: After the imposition of tax price paid by consumer increases whereas price received by producer…

Q: Given the following information: QD= 240-5P QS= P Given the following information: QD= 240-5P…

A: Equilibrium is achieved in the market where quantity demanded by the consumers matches quantity…

Q: Suppose the market for cigarette is competitive. An economist estimates the price elasticity of…

A: a) The burden would be shared more by the group which is less elastic. This is because they cannot…

Q: Suppose demand for good X is given by QD = 900- 1/2P where p is the price and QD the quantity…

A: Given QD = 900- 1/2P QD = 900- 0.5P QS = 1/4P QS = 0.25P At equilibrium QD = QS 900- 0.5P = 0.25P…

Q: The following tables describe supply and demand curves for a market. H P 70 20 50 S D Q Suppose the…

Q: Suppose an economist estimates the price elasticity of demand for sugary drinks is -4.2, while its…

A: Elasticity shows how responsive is quantity to changes in price level.

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

A: Total surplus is the sum of consumer surplus and producer surplus

Q: tormation = 240 - SP where Q is the quantity demanded, O is the quantity supplied and P is the price…

A: After the imposition of tax price paid by consumer increases whereas price received by producer…

Q: Richard and Henry like soda drinks. Henry's demand for soda is: P=10-Q; the demand for Richard is…

A: Without tax Henry Richard Demand for soda=P=10-Q supply for soda=P=1 Optimum profit is…

Q: Suppose the government imposes a $2 per burger tax on this market. a.) In response to the tax, the…

A: When a tax is imposed on each unit of a commodity, it is known as an excise tax.

Q: Which of the following statements is correct regarding a tax on a good and the resulting deadweight…

A: Dead weight Loss is the term appointed to the distinction underway and utilization of some random…

Q: Refer to Figure 6-9. The equilibrium price in the market before the tax is imposed is $1. $2.

A: The equilibrium price is intersection between Demand and Supply. There are two equilibrium in the…

Q: Suppose, the current market price for a liter of apple-juice is 62.0 in the market. iii. At this…

A: If the market price increases to $62 from $54.48. There will be a market surplus because due to high…

Q: Suppose the government removes a tax on buyers of a good and levies a tax of the same size on…

A: When the tax is imposed by the government, it is shared by buyers and sellers regardless of whether…

Q: Suppose the government imposes a per-unit tax on the sellers of potato chips, shifting the supply…

A: A per unit duty, or explicit expense, is an expense that is characterized as a proper sum for every…

Q: The following graph represents the demand and supply for pinckneys (an imaginary product). The black…

A: Equilibrium in the market occurs at the intersection of demand and supply curves, where quantity…

Q: The equilibrium price of a good is $13$⁢13. Suppose the government introduces a tax on this good. In…

A: The price at which the quantity demanded equals the quantity supplied is known as the equilibrium…

Q: Suppose now that the government decides to increase the number of quotas available to 72 units, but…

A: First, derive the equilibrium price and quantity: At equilibrium: Qd = Qs 180 – 2P = -15 + P 180 +…

Question

1.Given the following information

Qd= 240 – 5p

Qs= P

Where Qd is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. What is the buyer’s price after tax?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the relationship between total surplus and economic efficiency?
If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?
Suppose that the demand for tea in Boston is described by Quantity demanded = 20-p and the quantity supplied = 2p-4. What would be the price paid by consumers if there was a 6 dollar tax on tea?
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 loss
Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 Some economists believe that a sales tax, in general, is undesirable. Explain. Despite this, why do most countries still impose a tax on cigarette? Explain plausible arguments.
2. Using the following graph, answer the following questions. Also, show/Label your answers for parts a-e on the graph as well. Price 20 18 16 14 12 10 6. 4 6 8 10 12 14 16 Quantity 2 a. Suppose a $4 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed? b. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?
If a tax of 75¢ a cup is introduced, what is the price of a cup of coffee and how much coffee is bought? Who pays the tax?
Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 on the cigarette sellers. By how much would buyers share the tax burden respectively? Show your calculation.
consider the details of good X given and answer the questions below. Use illustrations If the government imposed a tax of Rs.3/- on every unit that is being supplied find the new equilibrium price and quantity, how is tax shared between consumers and suppliers Price Quantity Demanded Quantity supplied 12 120 20 20 40 140
How do I find the consumer and producer surplus?
iven the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the total surplus after tax.