use the attached graph to answer following question   With the export subsidy, this country will start importing steel from abroad. True or False   Under the export subsidy, consumer surplus is_______and producer surplus is_________. Government revenue(increase or decrease)    by_________   . As a result, total surplus  (remains unchanged, increase or decrease)  .

Q: The vertical distance between points A and C represents a tax in the market. Price P4 Supply P3 B P2…

A: The equilibrium price in a market is determined by the forces of demand and supply. The equilibrium…

Q: Consumer surplus is at maximum level when the government imposes tax on a good or service  True /…

A: # Consumer surplus occurs when the buyer's willingness to pay is higher than the market price of the…

Q: Complete the following table by using the previous graphs to determine the values of consumer and…

A: We have given a graph  Point E is the equilibrium point before tax.  We have to find consumer…

Q: Question 6 Deadweight loss from a tax results in: Weight loss from a recession. Loss of producer…

A: The deadweight loss is created when market forces do not work efficiently and there is either…

Q: Refer to Figure 8. A tax of $4 per unit is imposed on this market. The quantity traded in this…

A: We are going to calculate tax incidence to answer this question

Q: Question 37 Please refer to the description of a tax on a market, represented by the graphic  The…

A: Introduction In the above diagram, market is in equilibrium at price $6 and 2 quantities. Correct…

Q: b) calculate the consumer surplus before tax. c) calculate the producer surplus before tax. d) For…

A: Consumer surplus and producer surplus refers to the welfare received by the consumers and producers…

Q: Consider a food  market for which quantities demanded and supplied at various prices provided below…

A: Tax is defined as a mandatory fee or a charge which is levied by the government on an individual or…

Q: How will the imposition of the chosen government policy impact consumer surplus, producer surplus…

A: ANSWER   The chosen government policy impact consumer surplus, producer surplus and total surplus in…

Q: The following equations describe the market for mapping printers in California: Demand: Price =…

A: The equilibrium is set up where the demand and supply are equal. The specific tax is imposed on the…

Q: As a result of the tax,     consumer surplus decreases from $200 to $80.     producer surplus…

A: Taxation results in reduction of consumer surplus and producer surplus and also introduces a dead…

Q: Refer to the figure below for parts a and b.     Instructions: Round your answers to two decimal…

A: Equilibrium quantity and price for tge given scenario is  Q=40 and P=2. Consumer surplus is the area…

Q: The demand and supply in a perfectly competitive market are QD = 60 - p and QS = 2p , respectively.…

A: QD=60-p    and QS=2p In market equilibrium QD=QS so p=$20 and quantity =40 units

Q: Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of…

A: Dead-weight loss is the loss of economic efficiency which happens when the equilibrium result is not…

Q: What happens to consumer and producer surplus when the sale of a good is taxed? How does the change…

A: The consumer surplus is the area below the demand curve and above the price. Producer Surplus is the…

Q: Which of the following is the best description of “deadweight loss”? A. The decrease in total…

A: Deadweight loss is a cost to the society which is because of inefficiency in a market.

Q: total amount of consumer surplus lost due to the tax 1. A+B+F amount of consumer surplus lost due to…

A:

Q: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer.…

A: The price and quantity demanded to have an inverse relationship between them. It means that quantity…

Q: the deadweight loss created as a result of the tax the total tax revenue collected from this tax the…

A: Pre-tax equilibrium is at intersection of D and S curves. Post-tax equilibrium is at intersection of…

Q: Suppose that the government imposes a tax on cigarettes. Use the diagram in the photo below to…

A: Consumer surplus is the area under the demand curve and above the market price. Whereas, the…

Q: The market for piano lessons is as follows: Demand:  Q = 80 – 2P Supply: Q = 3P  Draw the supply…

A: Solution A Here O is Equilibrium point Solving Q and P Q= 80-2P = 3P             5P=80…

Q: BEFORE the imposition of the tax, the quantity traded in this market is [ Select ] the buyers pay (…

A: Before the tax, the equilibrium is attained where D and S intersect each other. The equilibrium…

Q: Assume that sugar-based soft drinks are produced in a market shown on the graph above. Answer the…

A: Sales tax: It is the cost on a commodity that is being imposed by the government to discourage the…

Q: Draw the supply curve, demand curve and solve for equilibrium (tax free) price and quantity. Solve…

A:

Q: Which of the following best describes the economic concept of "deadweight loss"? Select one: a. The…

A: With introduction of a tax price paid by consumer increases and the price received by seller…

Q: P.B=100 R P=80 P₁=75 1. P P.S=0 =60 1500 1875 S₁=MC D₁=MV Q . Consider the equilibrium after the…

A: Given

Q: A government intervenes in a market and as a result the demand curve shifts to the right. Which…

A: The government makes payments to encourage the production of goods and services that it sees as…

Q: (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain.

A: a. The price elasticity of supply is the calculation of the change of the amount being supplied with…

Q: If the demand for automobiles is price elastic and an excise tax is levied on sellers of automobiles…

A: The elasticity of demand is the percentage change in quantity demanded due to a unit percentage…

Q: Economics Question

A: a. The equilibrium price can be calculated by equating the given demand and supply function as…

Q: A subsidy is the opposite of a tax. With a $0.50 tax on the buyers of ice-cream cones, the…

A: Taxes and subsidies implied by the government affect the price of the goods, thus change the…

Q: Fill in the following table with the quantity sold, the price buyers pay, and the price sellers…

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

Q: Question: A tax is imposed on a certain good, and it produces revenue of $5,000 for the government.…

A: Given:  Total Revenue = $5000 Reduction in Consumer Surplus = $3000 Reduction in producer surplus =…

Q: Given: QD = 160 -5P QS = -11 + 4P In addition, the government imposed a $3.00 tax on the buyer.…

A: Demand refers to the quantity of a good that a consumer desires to buy and is willing to pay that…

Q: the market for candy, researchers have estimated the following demand and supply curves.  Demand:…

A: Equilibrium is achieved at the output level where Qs equals Qd

Q: When a tax is imposed on buyers, consumer surplus decreases but producer surplus does not change.…

A: Incidence of tax depends on relative elasticities of demand and supply and not on whom it is…

Q: There are two taxes proposed at the city council meeting: Policy A and Policy B. If raising taxes…

A: If raising taxes through Policy A produces MORE economic surplus than raising taxes through Policy…

Q: Discuss and provide two examples of how subsidies can be economically harmful.

A: A subsidy is a monetary, grant, or tax break provided by the government to individuals or…

Q: Question 18 When a tax is imposed, consumer surplus and producer surplus are reallocated to tax…

A: A tax reduces both consumer and producer surplus.

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: Demand of product X = 2 P = 2000 - 4 Q Supply of product X = P = 100 + 3 Q Sales tax per unit = $…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: When the government places a tax on the producer of a good or service both the supply and demand…

A: Option D is correct The supply curve for the good or service shifts to the left.

Q: For the market for the cigarettes with tax: A. Indicate: Price received by producers Quantity of…

A: Note Mention other questions separately. Thanks.     A. Indicate Tax:   The per-unit tax would be…

Q: In a market without taxes, consumer surplus is $100, and producer surplus is $200. After the…

A: In a market, when government intervenes, any gain or loss of the government will also be included in…

Q: A subsidy is the opposite of a tax. With a €0.50 tax on the buyers of ice cream cornets, the…

A: A subsidy is a benefit being given usually by the government to a business, an individual or an…

Q: Question 2 i) Given the following information QD =240-5p QS =p Where QD is the quantity…

A: Demand(D) curve shows a negative-relationship between price(p) and quantity(Q) i.e. when price(p)…

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 +…