Question

In: Economics

Consider the demand curves for beer: Q= 40 –2P. If the supply curve for beer is...

Consider the demand curves for beer: Q= 40 –2P. If the supply curve for beer is P=10 and the government imposes a tax of 2 on beer, the total revenue raised is equal to:

Solutions

Expert Solution


Related Solutions

1) Consider a monopolist with demand Q = 120-2p and marginal cost MC = 40. Determine...
1) Consider a monopolist with demand Q = 120-2p and marginal cost MC = 40. Determine profit, consumer surplus, and social welfare in the following three cases: a)single-price monopolist b)perfect price discrimination c)Consider that the firm is operating in a perfectly competitive market. Find the profit, consumer surplus, and social welfare under this situation. Show this study graphically.
Home’s demand curve for bananas is D = 100 – 2P and its supply curve for...
Home’s demand curve for bananas is D = 100 – 2P and its supply curve for bananas is S = 20 + 2P. Home is one of the largest banana importers in the world. When trade opens up, Home’s import demand curve is MD = 90 – 5P and it faces an export supply curve given by XS = 5P – 10. (6) A) With free trade, determine the equilibrium price and trade volume B)) Now Home imposes an ad...
Consider an aggregate supply curve described by MC =5 + Q and an aggregate demand curve...
Consider an aggregate supply curve described by MC =5 + Q and an aggregate demand curve described by MWTP = 20 –2 Q. 2a. What is the consumer surplus in the market equilibrium? 2b. What is the producer surplus in the market equilibrium?
Consider an aggregate supply curve described by MC =5 + Q and an aggregate demand curve...
Consider an aggregate supply curve described by MC =5 + Q and an aggregate demand curve described by MWTP = 20 –2 Q. In addition, there is a negative externality of E = 3 per unit of production. 4a. What is the unregulated market equilibrium quantity? 4b. What is the socially efficient quantity? 4c. What are the total social net benefits of producing the market quantity? 4d. What are the total social net benefits of producing the socially efficient quantity?
The market for cheap beer is characterized by the following supply and demand curves: S :...
The market for cheap beer is characterized by the following supply and demand curves: S : q = p + 3 D : q = −2p + 24 Suppose the government puts a $3 tax on cheap beer. 1. Using the point elasticity formula, calculate the price elasticities of supply and demand at the initial equilibrium. And do you expect the incidence of the tax to fall more heavily on the consumers or the producers? Explain. 2. Calculate the effects...
The market for cheap beer is characterized by the following supply and demand curves: S :...
The market for cheap beer is characterized by the following supply and demand curves: S : q = p + 3 D : q = −2p + 24 Suppose the government puts a $3 tax on cheap beer. 1. Using the point elasticity formula, calculate the price elasticities of supply and demand at the initial equilibrium. And do you expect the incidence of the tax to fall more heavily on the consumers or the producers? Explain. 2. Calculate the effects...
Consider an industry with market demand Q=550-2p and market supply Q=100+10p. Determine the equilibrium price and...
Consider an industry with market demand Q=550-2p and market supply Q=100+10p. Determine the equilibrium price and quantity. Suppose the govrenment imposes a tax of $6 per unit to be paid by consumers. What is the impact on equilibrium price and quantity? What if the sales tax is paid by the seller instead of the buyer? Suppose that demand is instead given by Q=280-2p. a) Show that the equilibrium levels of p and q are the same as in the initial...
6.3 In a competitive market, the market demand curve is Q = 28 - 2p and...
6.3 In a competitive market, the market demand curve is Q = 28 - 2p and the market supply curve is 19 If you do not see the Solver tool, you need to load it first. Look up Solver in the Excel help facility for instructions. Qs = -8 + 2p. Use a spreadsheet to answer the following questions. a. Determine the quantity demanded and quantity supplied for p = $4, 5, 6, …, 14. Determine the equilibrium quantity and...
The demand and supply curves of physician service is given by the equations -- Demand curve:...
The demand and supply curves of physician service is given by the equations -- Demand curve: Qd= 500 – 3.0 P and Supply curve: Qs = -100 + 1.8 P in absence of insurance. If insurance is introduced with 40% coinsurance, market price and quantity after the introduction of insurance would be Price=$200 and Q=260 Price=$125 and Q=125 Price=$200 and Q=0
suppose the supply curve and demand curve for the market of shoes is as follows: Qd=30-2p  ...
suppose the supply curve and demand curve for the market of shoes is as follows: Qd=30-2p   Qs=15+p Find equilibrium P and Q suppose a $2 / unit tax is imposed on the seller. Find the new equilibrium Q, Pb and Ps. Now rework the problem with at $2 / unit subsidy (a subsidy is the opposite of tax)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT