A tax A) places a wedge between the price paid by the buyers and the price received by the sellers. B) increases producer surplus C) decreases government spending. D) increases consumer surplus

Explain and demonstrate in a supply and demand diagram why: 1. Rent Controls create shortages of rental housing, and 2. Agricultural price supports create surpluses.

Table C Buyer Willingness to Pay (Dollars ) Kevin 25 Sasha 30 Erica 35 Chen 45 Refer to Table C. If the price is $27, then consumer surplus in the market is $55, and Erica and Chen purchase the good. $ 90, and Kevin and Sasha purchase the good. $29, and Sasha, Erica, and Chen purchase the good. $60, and Kevin, Sasha, Erica, and Chen purchase the good.

Discuss real world examples of Consumer and Producer Surplus ?

A subsidy is defined as a direct government payment to domestic producers government pension plan for domestic producers O a government savings account for domestic producers a small business loan to farmers

Studying and not sure how to do these

Solve part d and e

a)Show in four diagrams the incidence of an indirect (specific) tax in the case of elastic and inelastic demand and elastic and inelastic supply. b)Consider supply in the long run. Assume that a specific tax is imposed on a good that was    previously untaxed. How will the incidence of this tax change as time passes?

Consumer surplus is equal to: the consumer's willingness to pay for the good, minus the marginal cost of producing the good. the price of the good, minus the marginal cost of producing the good. the consumer's maximum willingness to pay for the good, minus the price of the good. the marginal cost of the good, minus the consumer's willingness to pay for the good.