If demand for toy drums is described by the equation QD = 300 - 5p, and...

If demand for toy drums is described by the equation Q_D = 300 - 5p, and supply is Q_S = 60 + 3p:

Find the equilibrium price and quantity.
If the government imposes a tax of $40 on the sellers, how much of the tax will the buyers ultimately pay?

Expert Solution

Rahul Sunny answered 2 years ago

Demand Equation: QD = 250 − 5P Supply Equation: QS = 10 + 3P

Demand Equation: QD = 250 − 5P Supply Equation: QS = 10 + 3P 1. When P = 5, what is the elasticity of supply? 2. What is The equilibrium price? 3. At the equilibrium price (from Question 2), what is the Consumer Surplus equal to? 4. Suppose the government imposes a tax of of $8 per unit sold of the good. How much of the tax does the consumer pay (per unit)?

Demand Equation: QD = 250 − 5P Supply Equation: QS = 10 + 3P 1. When...

Demand Equation: QD = 250 − 5P Supply Equation: QS = 10 + 3P 1. When P = 5, the elasticity of supply is A. 3 B. 0.6 C. 1 D. 30 E. 15 2. Suppose the government imposes a tax of of $8 per unit sold of the good. How much of the tax does the consumer pay (per unit)? A. $8 B. $3 C. $5 D. $6 E. $4

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

The market for a particular chemical, called Negext, is described by the following equations: Demand: Qd=100-5P...

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Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a...

Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed, (a)Considering that the government will earn revenue, overall, do you think that the society benefits from the imposition of the tax? Explain. (b) Calculate the equilibrium market price and the equilibrium quantity sold. (c) Determine the demand and supply equation after the tax. (d) What will be the new equilibrium price paid by the buyers...

The estimated demand function for commodity X is described by the following equation: ^ Qd =...

The estimated demand function for commodity X is described by the following equation: ^ Qd = 50 – 2Px + 1.5 In - 0.75 Py where Px = Price of commodity X In = Consumer Income Py = Price of commodity Y (a)Does the behavior of the consumer of this product follow the law of demand? Explain (b)Is commodity X a normal good or an inferior good? How did you know? (c)Comment on the relationship between commodity X and commodity...

1. The monthly demand curve for Leather Jackets is: QD = 7,500 – 5P QD =...

1. The monthly demand curve for Leather Jackets is: QD = 7,500 – 5P QD = demand for Leather Jackets per month P = price of Leather Jackets per month One firms supply curve is: qS = 5 + 0.25P (all firms have the same supply function) 1a. What is the price of Leather Jackets per month if the total supply from all firms is 7,000 Leather Jackets per month? 1b. How many Leather Jackets will each firm supply and...

The estimated demand function for commodity X is described by the following equation: Qd = 50...

The estimated demand function for commodity X is described by the following equation: Qd = 50 – 2Px + 1.5 In - 0.75 Py where Px = Price of commodity X In = Consumer Income Py = Price of commodity Y (a)Does the behavior of the consumer of this product follow the law of demand? Explain (b)Is commodity X a normal good or an inferior good? How did you know? (c)Comment on the relationship between commodity X and commodity Y....

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...

Qd = 200 -5p Qs = -100 + 20P Where: QD and QS are quantity demand...

Qd = 200 -5p Qs = -100 + 20P Where: QD and QS are quantity demand and quantity supplied respectively, and P is the price. At the market equilibrium price, producer surplus is equal to

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