The supply and demand curves are given below in the market for concer tickets. The price is in dollars ($). P = 150 - 3Qd P = 30 + 2Qs Assume a tax was placed on producers in this market of $20 per unit. The price consumers pay as a result of this tax increases by: $3 None of the answers is correct $12 $2 O $20

The consumer surplus for John is $10 and his maximum willingness to pay for the product is $30  What would have been the market price?

A small province is planning to levy a hotel room tax of $20 per night on hotel owners to recover some of the costs of government services associated with nonresidents. The average price of a standard hotel room in this province before the implementation of the tax is $150 per night. Market analysts predict that the average price of a hotel room will increase to $155 per night after the tax.   a) Use the supply and demand model to illustrate and explain how the proposed tax on hotel operators will impact the market for hotels. Clearly show in your diagram and explain in words the impact on price and quantity of hotel rooms as well as the revenue raised and any deadweight loss caused by the tax.  b) Discuss how tax incidence is shared between buyers and sellers. What share of this tax is paid for by buyers, and what share is paid for by sellers?  c) What do your findings in part b tell you about the price elasticity of demand for hotel rooms compared to the price elasticity of supply?…

Price (dollars per gallon of ice cream) 20 18 16 14 12 10 8 50 100 150 200 250 300 350 Quantity (thousands of gallons of ice cream) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from So to S1. The tax incidence is A) split equally between consumers and producers, each paying $1 per gallon. B) such that consumers pay $2 per gallon and producers pay $1 per gallon. C) split equally between consumers and producers, each paying $2 per gallon.