Question
Which of the following will change when a tax on consumers is instead placed on producers?...
Which of the following will change when a tax on consumers is instead placed on producers?
|
Consumer and producer surplus, and government revenue |
||
|
The equilibrium price, equilibrium quantity, consumer and producer surplus |
||
|
The equilibrium price and quantity, and government revenue |
||
|
The equilibrium price and quantity |
||
|
The equilibrium price |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Using the following information to calculate a)-n). Demand: P = 45- ½ Q Supply: P =...
Using the following information to calculate a)-n). Demand: P =
45- ½ Q Supply: P = 2Q
a) P*=_________
b) Q*=_________
c) Initial Consumer Surplus=__________
d) Initial Producer Surplus=__________
e) Total Surplus =_________________
Now the government imposes a $15 per unit tax on consumers.
Calculate the following.
f) Tax Distorted Competitive Equilibrium Quantity=_____
g) Price (consumers pay with tax)=________
h) Price (producers get with tax)=________
i) Consumer surplus with tax=_________
j) Producer surplus after tax=__________
k) Tax Revenue=_____________
l) Total...
4. The government places a tax on the suppliers of socks. (a) Illustrate the effect of...
4. The government places a tax on the suppliers of socks.
(a) Illustrate the effect of this tax on equilibrium price and
quantity in the sock market (drawing two graphs will be the easiest
way to do this) Identify the following areas both before and after
the imposition for the tax: consumer surplus, producer surplus, tax
revenue and dead-weight loss.
(b) Properly label the new quantity in the market after the tax,
the price that consumers pay and the price...
The demand for skateboards in Vermillion is Q = 500−2P and the supply curve is Q...
The demand for skateboards in Vermillion is Q = 500−2P and the
supply curve is Q = 1/2 P. The government 2
decides to raise revenue by taxing consumers $25 for each
skateboard purchased.
(a) Graph the supply and demand curves and calculate the
consumer and producer surplus that would exist if there were no tax
in the market.
(b) Show how the tax will change the market equilibrium price
and quantity. Identify the price paid by consumers and the...
1) Which of the following is the best example of a supply-side market failure? a) No...
1) Which of the following is the best example of a supply-side
market failure?
a) No one provides street lights ina town because once the
lights are in operation, people don't have to pay to use them.
b) A firm keeps its production costs down by dumping its waste
in the nearby river, adversely affecting water quality for
residents in the area.
c) Government imposes taxes on the production of a socially
desirable good.
d)Street performers don't get full payment...
In a presidential campaign, a candidate proposes a 50 cent per gallon tax on gasoline. The...
In a presidential campaign, a candidate proposes a 50 cent per
gallon tax on gasoline. The idea of a gasoline tax is both to raise
government revenue and to reduce oil consumption and the country’s
dependence on oil imports. The Demand and supply functions are
given by Qd=150-50P and
Qs=60+40P respectively. If the candidate
is voted into power and the policy is adopted:
Calculate the equilibrium quantity and price before
tax.(1 mark)
What will be the equilibrium quantity and price...
2. (30 Marks) Suppose a market is characterized by the following supply and demand equations: QD=1,000-5P...
2. Suppose a market is characterized by the following
supply and demand equations:
QD=1,000-5P
QS=-500+10P
A) Determine equilibrium price and quantity.
B) Suppose that the government taxes production such that for
every unit produced, sellers must pay the government $10. Determine
the new equilibrium price(s) and quantity.
C) Suppose that instead of taxes, the government imposes a price
floor such that the minimum amount the good can be sold for is
$150. Determine the new equilibrium price and quantity.
D)...
Suppose a market is characterized by the following supply and demand equations: QD=1,000-5P QS=-500+10P 1.)Determine equilibrium...
Suppose a market is characterized by the following supply and
demand equations:
QD=1,000-5P
QS=-500+10P
1.)Determine equilibrium price and quantity.
2.)Suppose that the government taxes production such that for every
unit produced, sellers must pay the government $10. Determine the
new equilibrium price(s) and quantity.
3.)Suppose that instead of taxes, the government imposes a price
floor such that the minimum amount the good can be sold for is
$150. Determine the new equilibrium price and quantity.
4.)Determine producer surplus, consumer surplus,...
Which of the following best describes the effects of a per unit purchased tax on producers...
Which of the following best describes the effects of a
per unit purchased tax on producers when the demand curve and the
supply curve are both neither perfectly elastic nor perfectly
inelastic?
a) Price to consumers increases; price received by producers
increases; quantity bought and sold increases
b) Price to consumers increases; price received by producers
decreases; quantity bought and sold increases
c) Price to consumers decreases; price received by producers
increases; quantity bought and sold increases
d) Price to...
Suppose that the demand equation: P = 6 – Q and supply equation: P = Q....
Suppose that the demand equation: P = 6 – Q and supply equation:
P = Q.
a. Calculate the price elasticity of demand at
equilibrium.
b. Calculate the equilibrium price and quantity, and consumer
surplus and producer surplus.
c. Suppose government imposes a unit tax of $1 on producers. Derive
the new supply curve and also calculate the new equilibrium price
and quantity.
d. Calculate tax revenue and the deadweight loss of this tax.
There is a sales tax that producers remit to the government, and the economic incidence of...
There is a sales tax that producers remit to the government, and
the economic incidence of the tax fall completely on the producer.
If instead the consumers remit the tax, where will the legal
incidence of the tax fall? Why?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 6 minutes ago
asked 7 minutes ago
asked 13 minutes ago
asked 26 minutes ago
asked 26 minutes ago
asked 36 minutes ago
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago