Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve, Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue?$ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)

Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and the vertical intercept is $66.00 for the demand curve, Assume there is initially no tax, and that a $12.50 tax is being proposed by policymakers. Report all answers to two decimal places a) Calculate the total amount of surplus that consumers would lose if the tax was implemented. $ b) Calculate the total amount of surplus that producers would lose if the tax was implemented. $ ) How much of the total losses for consumers and producers are recovered as government tax revenue?$ d) is there any surplus lost by either consumers or producers that is not recovered as revenue? (Click to select)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

ADVANCED ANALYSIS Apply the formula for the area of a triangle (Area 2 x Base x Height) to answer the following questions. i (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction a $85 $85 $59 $55 $45 $45 $35 $31 g D $5 $5 C 15 20 20 27 Quantity (bags) Quantity (bags) Price (per bag) Price (per bag)
Richard and Henry like soda drinks. Henry's demand for soda is: P=10-Q; the demand for Richard is P=5.5-0.5Q. The supply of soda cans is perfectly elastic at P=1. The government imposes a tax on soda cans equal to t=$1 per can. a) Which consumer will suffer the greater loss of consumer surplus in response of the tax? why?b) Would the government prefer all consumers to be like Henry or like Richard if the government wants to maximise tax revenue? Why? Accompany your answer with a diagram to illustrate your argument.
Consider the supply and demand functions graphed below. Price 100 75 70 60 10 56 Supply Demand 20 Quantity Suppose a demand-side tax is imposed. As a result of the tax, the new equilibrium quantity is 5. What is the price paid by consumers? $60 What is the price received by producers? $ How much is the tax that was imposed? How much tax revenue is collected? Which side of the market pays more of the tax? This side of the market pays more of the tax because SA A 4 4) (
The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Complete the first table, given the information presented on the graph. In the second table, indicate which areas on the previous graph correspond to each concept. Check all that apply.
Which of the following would lead to the creation of some consumer surplus? Sam refuses to pay $10 for a haircut because it is only worth $8 to him. Fred buys a car for $4000, the maximum amount that he is willing to pay. Danette pays $30 a month for phone service, but it is worth $70 a month to her. When Florence purchases a candy bar for 50 cents, she uses a $20 bill to pay for it.
Please answer both questions 2e - parts 2 and 3
The cookie demand curve slopes downward. When the price of cookies is $ 2, the quantity demanded is 100. If the price increases to $ 3, what happens to the consumer surplus?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Question 4 Consider the following supply and demand functions in a market: p=12-2Q p=2Q Suppose the government imposes a tax rate t*=4 on demand. Compute the total legal tax burden (incidence) on producers (after tax t* is imposed). (Enter your answer to one integer. For "8", you would write 8).
Consumer surplus is a measure of the difference between: a) The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b) The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c) The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d) The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).
The standard measure of consumer surplus is a fair measure of the value of a good to consumers because it gives an equal weight to each individual consumer.” Is this statement true, false, or uncertain?
Demand of product X = 2 P = 2000 - 4 Q Supply of product X = P = 100 + 3 Q Sales tax per unit = $ 100. Please calculate: a)Total surplus before and after tax. b) The amount of government revenue. c) Excess burden d) Draw the graph.