The value of consumer and producer surplus that is left out after imposing the tax factor.

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Answer 1

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

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the tax of $6 per unit ,the price that consumers will pay is $10 and quantity sold is Q=20 Question 35 Refer to the Figure 2-1. What is producer surplus after the tax? You can answer this in one (or more) of the following ways: Paste a picture or drawing of where to visually find the producer surplus on the graph. Describe in words where on a graph you would find producer surplus (ex: in relation to supply curve, demand curve, above or below or between certain price or quantities) Calculate the producer surplus numerically. Describe conceptually what the producer surplus is in this context.

Due to imposing a sugar tax, who would likely suffer a greater share of the deadweight loss – the consumer or producer? Explain.

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. PRICE (Dollars per pinckney) 37.50- 30.00 22.50 Demand Result Per-unit A B D с E 2.5 Supply QUANTITY (Pinckneys) Complete the following table, given the information presented on the graph. Equilibrium quantity after tax Price producers receive before tax $ Value ?

Answer 2

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

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Answer 3

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

Answer 6

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

Answer 7

Chapter 9.10, Problem 1.1MQ

To determine

To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 9.2 - Prob. 1MQ Ch. 9.2 - Prob. 2MQ Ch. 9.2 - Prob. 1TTA Ch. 9.2 - Prob. 2TTA Ch. 9.4 - Prob. 1MQ Ch. 9.4 - Prob. 2MQ Ch. 9.5 - Prob. 1MQ Ch. 9.5 - Prob. 2MQ Ch. 9.8 - Prob. 1MQ Ch. 9.8 - Prob. 2MQ

The value of consumer and producer surplus that is left out after imposing the tax factor.

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To describe: The value of consumer and producer surplus that is left out after imposing the tax factor.

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