1. Suppose the market demand for rutabagas is QD = 10 - 0.25P and the QS...

1. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium price of rutabagas?

2. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium quantity of rutabagas?

3. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax equilibrium quantity of rutabagas?

4. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price paid by the consumers of rutabagas

5. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price received by the sellers of rutabagas?

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the relative burden of this rutabaga tax between buyers and sellers?

	A.	consumers pay 62.5% of the tax and sellers pay 37.5%
	B.	consumers pay 50% of the tax and sellers pay 50%
	C.	consumers pay 37.5% of the tax and sellers pay 62.5%
	D.	sellers pay 100% of this tax because the government accessed the tax on sellers.

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the buyers (rather than the sellers) of rutabagas. which of your previous answers would change? Mark any (between 0 and 4) correct answers.

	A.	the equilibrium after tax quantity of rutabagas
	B.	the after tax price paid by the consumers of rutabagas
	C.	the after tax price received by sellers of rutabagas
	D.	the relative burden of the rutabaga tax between buyers and sellers

Solutions

Expert Solution

Rahul Sunny answered 3 months ago

Next > < Previous

Related Solutions

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A....

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A. Suppose the government imposes a tax of t = 5 on producers. What is the incidence of the tax on consumers? Producers? B. What is the deadweight loss of the tax?

4. Suppose the market demand and supply functions are QD = 180 – 1.5P and QS...

4. Suppose the market demand and supply functions are QD = 180 – 1.5P and QS = 3.5P + 40. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product. a. Determine the equilibrium price and quantity in this market. b. You’ve researched and found that most firms in the market currently experience costs such that TC = 15 + 45Q – 10Q2 + 1.5Q3....

Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs...

Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs = 12P − 60 a. Find the market equilibrium quantity, and the equilibrium price. (5 points) b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price floor of $8 is imposed in this market. (5 points) c. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price...

10. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are...

10. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: QS = –60 + 3P QD = 390 – 2P In the absence of trade with the rest of the world, the consumer surplus in the United States skateboard market equals _____ and the producer surplus equals_____. a. $7,050; $11,525 b. $31,500; $9,450 c. $20,474; $7,350 d. $11,025; $7,350 11. Suppose the domestic supply (QS) and demand...

Suppose the demand function for corn is Qd = 10-2p, and supply function is Qs =...

Suppose the demand function for corn is Qd = 10-2p, and supply function is Qs = 3p-5. The government is concerned that the market equilibrium price of corn is too low and would like to implement a price support policy to protect the farmers. By implementing the price support policy, the government sets a support price and purchases the extra supply at the support price and then gives it away to the consumers free. The government sets the support price...

Suppose that a market has the following demand and supply functions (normal) : Qd=10-p and Qs=2P-2...

Suppose that a market has the following demand and supply functions (normal) : Qd=10-p and Qs=2P-2 Graph the demand and supply 1. what is the equilibrium price 2. what is the equilibrium quantity 3. what is total surplus at this equilibrium 4. If the government imposed a $3/unit excise tax on producers in this market, what would be the new price that consumers pay? 5. If the government imposed a $3/unit excise tax on producers in this market, what would...

Suppose market demand and supply are given by Qd= 400-12P and Qs= -20 + 8P. If...

Suppose market demand and supply are given by Qd= 400-12P and Qs= -20 + 8P. If a price floor of $20.00 is imposed, there will be a surplus of 10 units. there will be neither a surplus or shortage. there will be a shortage of 16 units. None of the above choices makes any sense in this case.

Suppose market QD = 90 – 15P and market QS = 6P – 204 and the...

Suppose market QD = 90 – 15P and market QS = 6P – 204 and the representative firm’s total cost is TC = 4 + 3q + 0.1q2 and its marginal cost is MC = 3 + 0.2q. a.What is market equilibrium price? Show your work. b.What is the firm’s profit maximizing level of output at this price? Assume this is a perfectly competitive industry. c.What is the firm’s profit? d.If these same market conditions persist, would there likely be...

Suppose the market demand for cigarettes is: QD = 10 − P, and the supply of...

Suppose the market demand for cigarettes is: QD = 10 − P, and the supply of cigarettes is: QS = −2 + P, where P is the price per pack of cigarettes a. Graph the supply and demand curves. b. What is the equilibrium price and quantity sold of cigarettes? Show this on the graph. If the government imposes a cigarette tax of $1 per pack, c. What is the price paid by consumers? d. What is the price faced...

Market demand is given as Qd = 200 – P. Market supply is given as Qs...

Market demand is given as Qd = 200 – P. Market supply is given as Qs = 4P. a. Calculate equilibrium price and quantity a. If an excise tax of $4 per unit is imposed on sellers, calculate the price consumers pay Pc and the price sellers receive Ps. c. Also, calculate the dead weight loss and consumer surplus after the tax.

Subjects