Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 22, Problem 3RQ
To determine
Reducing the surplus corn.
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Students have asked these similar questions
Suppose the demand for a product is given by P = 30-3Q. Also, the supply is given by P = 10 + Q.
If a $4 per-unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax
will be
$4
$16
None of these
$24
O $8
Question 5
Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q.
If a $5 per-unit excise tax is levied on the buyers of a good, after the tax, consumer surplus is equal
to
O None of these
$16
$25
$24
1 pts
$2.50
20
18
16
14
12
10
8
D
4
2
0 1 2
3
4
5
6 7
8
9.
10 11 12
Quantity
Suppose that supply and demand at a market are represented by curves S and D at
the figure above (notice that the vertical axis grid has increments of $2) and then a
tax of $6 dollars per unit is imposed on buyers.
What is the new equilibrium market price?
$12
$16
$8
$10
Price
LO
Figure 50-5: Gains from Trade
Price
$6
5
4
3
2
O $0.
O $22.50.
$26.25.
O $52.50.
10
$30.
20
30
40
(Figure 50-5: Gains from Trade) The equilibrium price in this market is $2.50 and the
equilibrium quantity is 25 units. If the government imposes a tax of $3 in this market, only
10 units will be sold, and the deadweight loss will equal:
S
D₁
50
Quantity
60
Chapter 22 Solutions
Microeconomics
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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