Question 16 Suppose the market demand for a good takes the form: Q=100-2P X and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is producer surplus after the tax? Selected Answer: 1875 Question 17 Suppose the market demand for a good takes the form: =100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is total surplus after the tax? Selected Answer: 2750 Question 18 Suppose the market demand for a good takes the form: Q=100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is the deadweight loss from the tax? (Hint: calculate directly, using too many rounded values may lead to an inaccurate answer) Selected Answer: 37.5

Question 16 Suppose the market demand for a good takes the form: Q=100-2P X and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is producer surplus after the tax? Selected Answer: 1875 Question 17 Suppose the market demand for a good takes the form: =100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is total surplus after the tax? Selected Answer: 2750 Question 18 Suppose the market demand for a good takes the form: Q=100-2P and market supply takes the form: Q=-50+3P Suppose a $5 per unit tax is applied to sellers in the market. What is the deadweight loss from the tax? (Hint: calculate directly, using too many rounded values may lead to an inaccurate answer) Selected Answer: 37.5

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

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 4TY

See similar textbooks

Similar questions

TION 1 Given a demand curve of P = 156 - 4Qd and supply of P = 6 + 2Qs, find the total cost to society of a lump sum tax of 10 dollars, assuming the government is as efficient in resouce use as households.
Now calculate the government's tax revenue if it sets a tax of $0, $2, $4, 55, 56, 58, or $10 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 200 180 160 140 120 100 40 20 o 3 TAX (Dolars per pack) 10 A Laffer Curve
Kel ng Time: * Question Completion Status: The vertical distance between points and represents a tax in the market. PRICE 12 10 9 8 CO 76 5 inutes, 37 seconds. 4 3 2 1 A B Supply Demand +++ H 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6) QUANTITY Refer to Figure 8-2. The amount of tax revenue received by the government is a. $2.50. b. $9. c. $4. d. $5. A Moving to another question will save this response. Mac
2. The demand and supply functions of shirts are given by; Demand function: P = 50 - 1.5Q Supply function: P = 22 + 2Q Using the information above; Find the equilibrium price and quantity ii. If a tax of GH¢ 10.00 per unit is imposed calculate the equilibrium price and quantity iii. The distribution of tax Analyse the introduction of price maximum of GH¢15 on shirt in the market ii. Calculate th profit made by black marketers if black market operated in this market as a result of the introduction of price maximum of GH¢ 15 in the market
-Discuss the effects of indirect taxes on producers. min 200 word
5 4 3.5 3 2 Use the graph to answer the question that follows. Price ($) I I I 360 540 What is the value of the producer burden of the tax in this market? $90 $180 $360 $540 O $720 Quantity S S
Price Amount Requested (Unit) Amount Offered (Unit) (IDR) 2400 120 180 2000 160 150 Based on the demand function and supply function that you got in question number 1 above, determine the new market equilibrium point if the government imposes a perunit sales tax (fixed tax) on the goods "X" of Rp. 100 / unit. How much is the tax burden borne by consumers and the tax burden borne by producers, and how much is the government tax revenue
Question 39 Please refer to the description of a tax on a market, represented by the graphic What is the price that the seller receives (net of tax) after the tax is imposed?
Price (dollars per pizza) 20 16 14 10 8 6 4 2 S+ tax on sellers S D 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizzas) The figure above shows the pizza market in the city of Pepperoniville. If the government imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is $ and the price the seller receives for the pizza is $ Just enter value. Do not include the "$" sign.
A product has demand given by Q = 30 – 2P, where P here means buyer price of course. Supply is given by Q = P, where P is seller price here. First, with no tax in this market, find equilibrium price and quantity. Next, suppose that an excise tax of $3 is imposed on the sellers for each unitthey sell. In this case, determine the equilibrium buyer and seller prices and market quantity. How is the tax shared between buyers and sellers?
Calculate the percentage of the tax borne by the demander and supplier in each of the following cases:Instructions: Enter your responses rounded to the nearest whole number. Elasticityof demand Elasticityof supply Percent borne by demander Percent borne by supplier a. ED = 0.1 ES = 0.5 % % b. ED = 1.0 ES = 2.0 % % c. ED = 1.3 ES = 0.9 % % d. ED = 1.9 ES = 0.7 % % e. Summarize your findings regarding relative elasticity and tax burden. Consumers bear a greater portion of the tax burden because consumers choose to buy the good. Whichever group (producers or consumers) has the lower elasticity bears the greater portion of the tax burden. Whichever group (producers or consumers) has the higher elasticity bears the greater portion of the tax burden. Producers usually bear a greater portion of the tax burden because the government generally levies more taxes on producers.
Title The supply and demand equations for a good are respectively. The government decides to impose a tax,... Description The supply and demand equations for a good are Qd=500-9p and Qs=-100+6p respectively. The government decides to impose a tax, t per unit of good. Find the value of t that maximizes the government’s total tax revenue on the assumption that equilibrium conditions prevail in the market. For this level of tax find: a) The equilibrium price, b) The equilibrium quantity, c) The total tax raised.