Qd=300-2P Qs = 3P-200 a) Calculate the Consumer Surplus and Producer Surplus, Total Surplus, and show...

Qd=300-2P Qs = 3P-200

a) Calculate the Consumer Surplus and Producer Surplus, Total Surplus, and show graphically.

b) After the tax levied on consumers, the demand function is the following: Qd = 300 -2(P-1), calculate the new Consumer Surplus, Producer Surplus, and Total Surplus. Show graphically. c) Discuss your results.

Use supply and demand graphs and draw a graph to show what is happening in the market. Tell us about the elasticity of supply and demand, its impact, and its consequences. In addition, you will need to draw a diagram for all three points, as well as a brief explanation (as discussion) of them.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

1-Given the following two equations: Qd = 150 – 3P Qs = 70 + 2P A-...

1-Given the following two equations: Qd = 150 – 3P Qs = 70 + 2P A- Calculate the equilibrium price and the equilibrium quantity. Show all your work. B- Using the above two equations tofind the values of Qd, Qs, the market situation (Shortage/Surplus/Equilibrium), and the Value of shortage or surplus if any, at the following prices. 10, 15,20 and 25. C- If the consumer income increases by 20%, what will happen to the equilibrium price and quantity 2-Question two...

Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a 10% ad...

Demand: QD = 100 - 2p Supply: QS = 3p If government imposes a 10% ad valorem tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected?

Suppose a market is characterized by the following: QD = 1,500-3P QS = -500+2P A) Determine...

Suppose a market is characterized by the following: QD = 1,500-3P QS = -500+2P A) Determine the equilibrium price and quantity . B) Graph the equilibrium price and quantity in part A) C) Suppose the government imposes a per-unit tax of 5 (ie. 5 dollars in tax on every unit purchased) on buyers. Solve for the new equilibrium price and quantity. HINT: There are two prices and one quantity to solve for. . D) Determine the total amount of tax...

Explain what is consumer surplus, producer surplus and total surplus. Show graphically how a price floor...

Explain what is consumer surplus, producer surplus and total surplus. Show graphically how a price floor reduces total surplus.

Market demand is given as Qd = 200 – 3P. Market supply is given as Qs...

Market demand is given as Qd = 200 – 3P. Market supply is given as Qs = 2P + 100. In a perfectly competitive equilibrium, what will be price and quantity? Price will be $20 and quantity will be 140. Price will be $50 and quantity will be 260. Price will be $100 and quantity will be 300. Price will be $140 and quantity will be 380.

identify and explain how to calculate (i)consumer surplus (ii) producer surplus (iii) total surplus ( with...

identify and explain how to calculate (i)consumer surplus (ii) producer surplus (iii) total surplus ( with and without tax) (iv) deadweight loss (v) tax revenue (vi) graph the above (vii) share of tax burden paid by the buyer and seller - calculating change in CS, PS and TS What is Laffer? what is tariff?

The demand and supply for a product is given by: Qd: 300-5P Qs: 3P-100 Suppose the...

The demand and supply for a product is given by: Qd: 300-5P Qs: 3P-100 Suppose the government imposes a tax T=$16 Calculate: A) Consumer surplus after tax B) Producer surplus after the tax C) Government Revenue D) Deadweight Loss

A market is described by the following supply-and-demand curves: QS = 2P QD = 300−P The...

A market is described by the following supply-and-demand curves: QS = 2P QD = 300−P The equilibrium price is_______and the equilibrium quantity is________. Suppose the government imposes a price ceiling of $90. This price ceiling is [binding/not binding], and the market price will be______. The quantity supplied will be ______ , and the quantity demanded will be_______. Therefore, a price ceiling of $90 will result in [a shortage/ a surplus/ neither a shortage nor surplus]. Suppose the government imposes a...

Taxes qd= 12-3p qs= -2+2p Using the supply and demand functions from problem 1, suppose a...

Taxes qd= 12-3p qs= -2+2p Using the supply and demand functions from problem 1, suppose a per unit tax of 1 were charged to the buyer. a) How much does the buyer pay? b) How much does the seller receive? c) What is the equilibrium quantity? d) How much tax revenue is generated? e) How much tax burden do the buyer and seller each bear? f) Calculate the consumer surplus, producer surplus, welfare level, and dead weight loss with this...

2. Consumer Surplus and Producer Surplus Explain in words and graphically how consumer surplus, producer surplus...

2. Consumer Surplus and Producer Surplus Explain in words and graphically how consumer surplus, producer surplus and total surplus change when the minimum wage is removed. Assume the minimum wage is above the free market price. In your explanation please interpret the components of the changes in consumer surplus, producer surplus and total surplus; i.e. what each component represents. For additional points, what happens if the minimum wage is set below the free market price? please graph

Subjects