A good can be produced in a competitive industry at a cost of $10 per unit. There are 100 consumers are each willing to pay $12 each to consume a single unit of the good (additional units have no value to them.) What is the equilibrium price and quantity sold? The government imposes a tax of $1 on the good. What is the deadweight loss of this tax? (Explain with graphics)
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(Explain with graphics) A good can be produced in a competitive industry at a cost of $10 per unit. There are 100 consumers are each willing to pay $12 each to consume a single unit of the good (additional units have no value to them.) What is the
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- The government imposes a 15% tax on the price of a good. How much does the consumer pay for a good price by a firm at $1360? [Write your answer -- a number - into the box.]Please written by computer source Suppose that the demand curve for a product is given by Q = 100 −10p and the supply curve is Q = 10p. Assume that income effects (elasticities) are small so consumer surplus is a good measure of consumer welfare. (a) What is the equilibrium price and quantity with no distortions? (b) The government imposes a tax of $2.00 per unit sold. What is the new equilibrium quantity? Sketch the market equilibrium in a graph. (c) Given the tax what is the change in consumer surplus? What is the change in producer surplus? What is the change in government revenue? What is the net Dead Weight Loss from the tax? (d) Say the government proposes to use the revenue from the tax to pay for snacks in our last ECON 312A lecture. The total social benefits from the snacks would be $82.00. Will the tax increase overall welfare if the revenue is used to buy the snacks? What is the dollar value of the net gain or loss to society?The following diagram shows supply and demand in the market for smartphones. Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) Demand 300 270 Equilibrium 240 210 180 Consumer Surplus 150 120 Producer Surplus 90 60 30 Supply 30 60 90 120 150 180 210 240 270 300 QUANTITY (Millions of phones) Total surplus in this market is $ million. PRICE (Dollars per phone)
- The table below shows the total demand and supply for bushels of wheat per month. Supply (*000) Demand Price per bushel (S) (*000) 85 3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81 Required: There has been discussion being raised "Surpluses drives prices to go up meanwhile shortages drives the prices to go down". What is your perspective on this statement? Do you agree? (i)The U.S. government has subsidized ethanol production since 1978. With the advent of affordable electric cars, policymakers are considering whether to allow the subsidy to expire. The accompanying graph represents the market for ethanol. Move the supply and/or demand curves to show how reducing the subsidy will affect the ethanol market. Equilibrium price? may increase or decrease, but it is impossible to know for sure. decreases. remains constant. increases.Cocoa (Cacao) beans and imported from South America. The government has decided to increase the tax on imported goods such as cocoa. What effect would this have on the market for hot cocoa?
- The table shows the demand and supply schedules for hamburgers. If the quantity demanded of hamburgers decreases by 40 per hour at each price, the new price of a hamburger is $ Total surplus by $The diagram to the right illustrates the supply curve for hot dogs by Frank's Frankfurters, a local hot dog producer. Calculate the dollar value of producer surplus if equilibrium price is $0.40 per dozen. Supply of Hot Dogs 2.00- 1.80- 1.) Using the point drawing tool, find the quantity 1.60- S that Frank's Frankfurters is willing to supply if equilibrium price is $0.40 per dozen. 2.) Using the triangle drawing tool, illustrate the amount of producer surplus that Frank receives if equilibrium price is $0.40 per dozen. Carefully follow the instructions above and only draw the required objects. Price per dozen ($) 1.40- 1.20- 1.00- 0.80- 0.60- 7 0.40- 0.20 0.00 0 20 30 40 50 60 70 80 90 Quantity of hot dogs per month (millions) CConsider a market for coffee an inferior good in Pakistan. You are supposed to analyze and discuss the effect on the equilibrium output and price in the coffee market in Pakistan for April, 2021 after the following changes (Other things held constant). In each case, explain your answer using the supply and demand diagram. There has been a decline in wages of all employees and an increase in the price of tea in Pakistan during 2021 due to the third wave of coronavirus 2.News reports on April 5, 2021 claim that the consumption of coffee is good for the health of coronavirus patients.
- 40) Use the following graph for a competitive market to answer the question below. $3.50 * $2.50 300 400 Price A $1.25 D Quantity Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer? 41) You have decided that you want to attend a costume party as Iron Man. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional pieces you need will cost you $25 more. The marginal cost of completing the costume is $( ).Question 3 Suppose the demand for a product is given by Q-100-5P, where Qp is quantity per year measured in kilogram and P is the price in AUD per kilogram. The supply curve for this product is given by Qs=4P-8. Answer the following questions and provide a graph illustration. a) Determine the equilibrium price? b) Calculate the elasticity of demand and supply at the equilibrium price. c) Determine the consumer surplus and producer surplus at the equilibrium price? d) Suppose that the government imposes a floor price of A$15 and promises to buy any surplus (e.g., Q³- QD) on the market. Determine the new consumer surplus, the new producer surplus, and the government expenditure of this policy e) Instead of using the floor price, now the government imposes a A$3 tax on each kg sold, determine the market price after having this tax policy. f) Calculate the consumer surplus, producer surplus and tax revenue. g) Using the concepts of demand and supply elasticity, predict which party, the…Assume that Hurricane Dorian destroyed thousands of crawfish traps. Explain and illustrate what would happen to the consumer surplus of crawfish consumers.