Question

- Draw and label a graph depicting a government tax on suppliers
of a good (see Chapter 6 slide 25) (20 points total)
- Start with a graph depicting general market equilibrium with the demand curve being relatively less elastic then the supply curve (10 points possible).
- Modify the graph to demonstrate the effect of a tax on the supplier on the market (10 points possible).

Answer #1

Draw and label a graph depicting a government tax on consumers
of a good.
Start with a graph depicting general market equilibrium with
the demand curve having a slope of 1 (technically negative 1) and
the supply curve having a slope of 2.
Modify the graph to demonstrate the effect of a tax on the
consumer on the market.

Draw and label a graph depicting world trade in which the world
price is perfectly elastic and lower than the country price.
Start with a graph depicting market equilibrium with the demand
curve and supply curves having slopes of approximately 1 (negative
1 for demand).
Modify the graph to demonstrate the world market price being
lower than the country market price.

Draw and label a graph depicting a monopolistic market from
perspective of a single firm.
Make sure you illustrate the profit maximizing price and quantity
(10 points total).
Start with a graph depicting market equilibrium for the
monopolistic market (5 points possible).
Modify the graph to demonstrate that the price at the profit
maximizing level of output is above the average variable
cost curve, but below the average cost
curve (10 points possible).
Is the firm making a profit or...

Draw a graph to analyze the market for agricultural products
(food). Label your price and quantity axes properly. In your graph,
draw a supply curve for agricultural products (food) that obeys the
law of supply. Label (S). In the same graph, draw a demand curve
for food that obeys the law of demand. Label (D). Identify the
market equilibrium point in your graph and label (E). Also, label
the equilibrium price (PE) and the Equilibrium quantity (QE):
1. Using supply/demand...

a) Graph a labor supply curve with an upward-sloping labor
supply. Label the vertical axis as “wage rate” and the horizontal
axis with “Quantity of labor” a. Place these two points on the
curve: {wage= $10, quantity = 30} and {wage = $12, quantity = 45}.
Calculate the labor supply elasticity. Label this curve as “Curve
A”
b) Now, assume that something has changed the labor supply curve
so that now the line has a different slope. On this new...

2. Graph B: Utilize a market model to draw the demand and supply
for loanable fund in equilibrium. Label the demand curve D1 and the
supply curve S1. Label the initial interest rate as r1 and quantity
of loanable funds as Q1. Shift the correct curve to demonstrate
what happens in this market when there is strong economic growth.
Be sure to label the new equilibrium interest rate and quantity of
loanable funds. Briefly describe what has happened in this...

) Draw a supply and demand graph that gives you the result
stated in 5a and 5b. Based on the information in each statement,
you should shift either the demand or the supply curve, and show
that shift on the graph. Then, you must write a statement about the
elasticity of the other curve (the curve that does not shift),
which gives you the indicated result. Label the graph carefully,
including the axes. Label the initial supply curve S1 and...

If the government decides to impose a tax of 20 cents per liter
on petrol, illustrate the impact of the tax on market equilibrium
price, and discuss whether the outcome is efficient by
demonstrating the change of consumer’s and producer’s surplus as a
result of tax .
- Draw a demand and supply model with demand
curve
- Show the shift of S as a result of 20 cent
tax.
- Mark the price paid by consumer and received by...

For this exercise you will need to first build a graph to these
specifications: Draw a downward sloping demand curve with vertical
intercept (0,150) and horizontal intercept (25,0). Draw a supply
curve with vertical intercept (0,50) and with slope=4 i.e. the
market equilibrium occurs at (10, 90).
a. Compute consumer, producer, and total surplus at the market
equilibrium.
b. Label consumer surplus and producer surplus if the government
imposes a price floor of $120, then compute
deadweight loss.
c. Compute...

Assume a market is in equilibrium. The government then imposes
an excise tax on the sellers. The result will be a _______ shift of
the supply curve, and the equilibrium price will _______.
(Hint: Draw a careful graph before answering this question.)
A. leftward, increase by the amount of tax
B. leftward, increase by an amount less than the tax
C. rightward, decrease by the amount of the tax
D. rightward, increase by the amount of the tax

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