ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Need e and f answered

Consumer and Producer surplus
Stax
P
$100
$70
$50
$45
$X
$5
D
40
60
Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all
work.
а.
How much is the tax per- unit
b. How much is the value of X (intercept of the green line). How do you describe what that value
is?
C.
How much is the consumer surplus before the tax?
d. How much is producer surplus before the tax?
е.
How much is the consumer surplus after the tax?
f.
How much is producer surplus after the tax?
g.
How much is the deadweight loss as a result of the tax
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Transcribed Image Text:Consumer and Producer surplus Stax P $100 $70 $50 $45 $X $5 D 40 60 Assume an excise tax that has caused a decrease in Supply as shown on the graph above Show all work. а. How much is the tax per- unit b. How much is the value of X (intercept of the green line). How do you describe what that value is? C. How much is the consumer surplus before the tax? d. How much is producer surplus before the tax? е. How much is the consumer surplus after the tax? f. How much is producer surplus after the tax? g. How much is the deadweight loss as a result of the tax
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