Question

Demand for face masks is characterized by the equation Pd=80-3Qd, while supply is characterized by Ps=10+2Qs....

Demand for face masks is characterized by the equation Pd=80-3Qd, while supply is characterized by Ps=10+2Qs. Price is in dollars and the quantity is in thousands. What would be the result of a tax of $15 per face mask?

A. Govt revenue of 81,250 and deadweight loss of 3,125.

B. Govt revenue of 22,500 and deadweight loss of 165,00.

C. Govt revenue of 165,00 and deadweight loss of 22,500.

D. Government revenue of 3,125 and deadweight loss of 81,250.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If we consider the supply and demand for gizmos to be as follows : Ps =...
If we consider the supply and demand for gizmos to be as follows : Ps = 2Qs + 50 Supply Equation Pd = 150 – 3Qd Demand Equation If the government imposes a tax (Pt) of $6 on each gizmo, what is the deadweight loss (DWL)? Given your answer in d, what is the social surplus lost due to the tax? Compute the leakage of the tax imposition?
f we consider the supply and demand for gizmos to be as follows : Ps =...
f we consider the supply and demand for gizmos to be as follows : Ps = 2Qs + 50 Supply Equation Pd = 150 – 3Qd Demand Equation If the government imposes a tax (Pt) of $6 on each gizmo, what is the deadweight loss (DWL)? Given your answer in d, what is the social surplus lost due to the tax? Compute the leakage of the tax imposition?
The inverse demand curve for delivery meals is: Pd=18-3Qd the inverse supply curve is: Ps=3Qs where...
The inverse demand curve for delivery meals is: Pd=18-3Qd the inverse supply curve is: Ps=3Qs where p is price of meal in dollars, Q is quantity in thousands of meals a.) solve for equilibrium price and quantity b.) draw the supply and demand curves and the equilibrium outcome on axes below and label graph c.) Calculate the consumer surplus and producer surplus in this market, and show them on the set of axes above. d.) suppose the government imposes a...
The market for DVDs has supply and demand curves given by Ps = 2Qs and Pd...
The market for DVDs has supply and demand curves given by Ps = 2Qs and Pd = 42 - Qd, respectively. a) How many units will be traded at a price of $35.00? b) Which participants will be dissatisfied at a $35 price (sellers or buyers)? (Click to select)SellersBuyers c) How many units will traded at a price of $14? d) Which participants will be dissatisfied at a $14 price (sellers or buyers)? (Click to select)SellersBuyers e) What quantity of...
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.
The demand and supply for Fuji apples are given by QD = 17,500 - 25 P...
The demand and supply for Fuji apples are given by QD = 17,500 - 25 P and QS = 10 P, where P is price per pound and Q is pounds of apples. What is the consumer surplus and producer surplus at the equilibrium? A. CS = $500,000; PS = $1,250,000 B. CS = $750,000; PS = $1,250,000 C. CS = $500,000; PS = $750,000 D. CS = $1,250,000; PS = $500,000 The market for plywood is characterized by the...
Suppose demand and supply can be characterized by the following equations: Qd = 6 – 2P...
Suppose demand and supply can be characterized by the following equations: Qd = 6 – 2P Qs = P Price is in dollars; quantity is in widgets. For parts (a) and (b), assume there is no tax. Show your work for each step below. Find the equilibrium price and quantity algebraically. Calculate the following: consumer surplus producer surplus total firm revenue production costs For parts (c) and (d), assume a tax of $1.50 per widget sold is imposed on sellers....
9.21) Suppose the domestic demand equation for a widget is given by Q = 80 –...
9.21) Suppose the domestic demand equation for a widget is given by Q = 80 – 2P and the domestic supply equation is Q = -10 + P. a) Assume there is free trade and the world price of the widget is 20 liras. How many units of this widget will be imported? b) Calculate the change in the consumer supply and producer supply if the government applies a 5 liras per unit tariff on the product. What will be...
The demand function for a product is given by p=80-0.5Q and the supply function is p=50+0.25Q,...
The demand function for a product is given by p=80-0.5Q and the supply function is p=50+0.25Q, where p is the price and Q is the quantity. Suppose that the government impose a tax of $15 on every unit sold. a) Find equilibrium price and quantity before imposing the tax. b) Find price of buyer and seller and the quantity sold in the market after tax. c) Find the tax burden on buyer and seller. d) Find government revenue and deadweight...
Let the market demand curve be QD=8-P and the market supply curve be QS=P. Let price...
Let the market demand curve be QD=8-P and the market supply curve be QS=P. Let price P be measured in $/unit and let quantity Q be measured in singular units (i.e. simple count). Solve for the equilibrium price P* and quantity Q*. Now, assume the government imposes a $2/unit tax on consumers, which leads to wedge/gap between the buyers’ price Pb and the sellers’ price PS. Rewrite the demand and supply curves using Pb and PS, respectively. Write down the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT