Consider the demand curve as in tutorial 12 (question 1), qd = 240 - 3p, where q is the quantity demanded and p is the price. The supply curve is given by qs = p - 6. If a specific (or per-unit) tax of $20 is imposed on sellers, how much tax revenue does the government raise in this market? [Round to one decimal place in both your calculations and in your final answer; Note: both the supply curve and the tax are different from the tutorial question.]

Suppose that the equilibrium quantity in the market for gadgets has been 85,000 per month. Then a tax of $6 per gadget is imposed on gadgets. As a result, the price paid by buyers increases by $4 and the after-tax price received (and kept) by sellers falls by $2. Given this tax imposition, the government is able to raise $481,740 per month in tax revenue. We can conclude that the imposition of the tax (x) has caused a deadweight loss by an amount more than $13,750 but less than $14,500 per month. (y) has reduced the equilibrium quantity of gadgets by more than 4,450 but less than 4,675 gadgets per month. (z) has reduced consumer surplus by more than $328,750 per month and has reduced producer surplus by more than $164,775 per month.

Suppose that a market is described by the following supply and demand equations: Q³ = 2P QD=300-P A tax of T is place on buyers, so the new demand equation is QD = 300 - (P+T). The deadweight loss of a tax is the area of the triangle between the supply and demand curves. Recalling that the area of a triangle is 1/2"base height, which of the following functions of T is the deadweight loss? T²/3 2T/3 2*(300-T)/3 (300-T)/3

Refer to Figure 2. Suppose the government imposes a tax of $0.60 per soft drink purchased. When it comes to the economic incidence, who is bearing the tax burden, buyers, or sellers? Explain using actual numbers   .......... 1) Suppose the government introduces a ceiling on the fees that lawyers are permitted to charge. This fee ceiling A) is always inefficient. B) results in an inefficient use of resources when the ceiling is above the equilibrium fee. C) results in an efficient use of resources when the ceiling is above the equilibrium fee. D) results in an efficient use of resources when the ceiling is below the equilibrium fee. E) is always efficient.   2) An effective rent ceiling A) increases producer surplus.                                   B) results in a producer surplus of zero. C) sometimes increases producer surplus and sometimes decreases producer surplus. D) decreases producer surplus.                                   E) decreases the supply of housing.

Refer to the figure entitled "Market for Cola". Suppose DO denotes the original demand curve and D1 denotes the demand curve after a per-unit tax is imposed on the buyers. What is the change in equilibrium price due to the tax? Price (per six pack) 10 1 4 10 Market for Cola D₂ 20 30 40 Quantity (# of six packs) Da 50 1) $1 2) $2 3) $3 4) $4 5) None of the above.