Suppose that a market is described by the following supply and demand equations: Qs = 2P, Qd = 300 P Suppose that a tax of T is placed on buyers, so the new demand equation is Qd = 300 - (P + T) %3D d) Solve for deadweight loss as a function of T.

Suppose that a market is described by the following supply and demand equations: Qs = 2P, Qd = 300 P Suppose that a tax of T is placed on buyers, so the new demand equation is Qd = 300 - (P + T) %3D d) Solve for deadweight loss as a function of T.

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

i want just explanation How does 8-1Q1= 8-Q2 become Q1+Q2= 10
The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=320−5P Supply function: QS=−40+5P (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?
A market for a certain type of golf clubs has the following supply and demand: QD where p denotes the unit price. 25p —D 4,500 - 20р, (a) Find the number of golf clubs produced and the equilibrium price. What is the consumer and producer surplus? (b) Suppose that a unit tax of nine dollars is levied on the producers of golf clubs. Find the number of golf clubs sold. What is the consumer and producer surplus in this case? ce wa се (c) How is the tax burden shared? cro.com
2. Suppose the demand for a commodity depends on the price per unit P according to D = a – bP, but that a tax of t per unit is imposed on the consumers. The constants a and b are positive. The supply function is S = g(P), where g'(P) > 0. a. Express the equilibrium condition in the marker for this commodity. b. The equilibrium equation defines P as a differentiable function of t. Find dP/dt and determine its sign. c. What happens to the price P +t paid by the consumers when t increases?
The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=290−5P Supply function: QS=−60+5P (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 10 per unit on soft drinks. (b) What is the total new consumer surplus and producer surplus after government intervention? Note: Bartleby does not accept more than 3 sub-parts, and here are only 2. Please answer all to get a 'like'. Thanks.
The demand (D) and supply (S) function for a commodity are P=100 - 20 and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes. [In order to insure that we all do this problem in the same way, let's assume that the tax is imposed on the supply side of the market. In addition, the burden of the tax on demanders is the difference in price demanders pay when the tax is in existence less the price they paid when there was no tax. The burden on suppliers is the difference in price suppliers received when there was no tax and the net price (after remitting tax to the government) they receive when the tax is in existence.]
Suppose demand and supply are given by:Qx d = 14 −  2Px and Qx s = 14Px-2b. Suppose a $12 excise tax is imposed on the good. Determine the new inverse demand function.
18. Suppose that corporate income tax in Japan is 30% for large enterprises. And one of them is Nissan Japan. Assume that Nissan Japan places its electric vehicles (EV) factory in California, USA by setting up Nissan America. California charges enterprises with a 10% corporate (flat) income tax rate. Suppose the demand of Nissan EV in Japan is p=220-2Q (p: price in one hundred thousand yen, Q is number of EV per week). Costs of transporting EV cars from California to Japanese customers and taxes and fees related to export-import activities are assumed to be zero. Its production cost in California is constant at 20 per unit. If Nissan American sells EVS produced in California to Nissan Japan at its production cost, what are the combined net profits of all Nissans and total corporate income tax the Nissan Japan has to pay (per week)? (Note: Nissan Japan will use the transfer price as its marginal cost.) ONet profit=5000; Sum of corporate tax=1500 Net profit=3500; Sum of corporate…
Suppose that the demand and supply functions for good x are given as follows: Q = 240-2P, +1-P, and Q - -30+ P-21 +8-25 where P, denotes the price of good x. P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices What is the equilibrium quantity of x as a function of exogenous variables P, .I. t. s and f eqb Qeqb Qeq = 60 + = 90 + = 1+Py-4t+2s-4f 3 90+ 1-Py-4t+2s-4f 3 eqb Qx = 60 + 1-Py-4t+2s-4f 3 1+Py+4t+2s-4/ 3
If the pre-tax cost function for John's Shoe Repair is C(q)=100+10q-q^2+1/3q^3, and it faces a specific tax of t=10, what is the profit-maximizing condition if the market price is p? Can you solve for a single, profit maximizing q in terms of p?
Suppose you are an aid to the Odododiodo Member of Parliament who is concerned about the impact of a new tax on the welfare on his constituents. You have explained to him that one of the ways he can determine the impact is to calculate the price elasticity as well as the consumer surplus. Conduct a formal analysis by undertaking the following exercises when the demand and supply functions for the goods in question are given as Qd=500-5p and Qs=2p-60 a. Sketch the supply and the demand curves.b. Calculate the equilibrium price and quantity.c. If government imposes a tax of ¢2 on this commodity, calculate the new price and quantity afterthe imposition of the taxd. Calculate the consumer surplus before the taxe. Calculate the own price elasticity of demand before the imposition of the tax.
The demand and supply functions for a product are: O, = 50 - 3P and O, =-6+4P, respectively B (i) Graph each function on the same diagram. From the graph determine the equilibrium price and quantity. Confirm your answer algebraícally. (ii) If the producer must pay a fixed tax of £3.5 per unit, rewrite the equation of the supply function to include tax. Graph the supply function and hence determine the equilibrium point when tax is included. What percentage of the tax is paid by the consumer? Give an interpretation for your results.