Question

In: Economics

The demand and supply for orange juice are given by Qd = 30−P and Qs =...

The demand and supply for orange juice are given by Qd = 30−P and Qs = 4P. (a) Solve for the equilibrium price and quantity. (b) Suppose now the government imposes a per-unit tax of $2.5 on the sellers. (c) Solve for the new quantity, net price sellers received, and price consumers paid. (d) Calculate the government revenue from the taxation.

I only need these answered:

(e) Calculate the deadweight loss resulting from the taxation. (f) What portion of the deadweight loss used to belong to each party. (g) What fraction of the economic incidence of the tax is borne by consumers? (h) Solve parts (b)(e) for the case where the consumers pay the tax instead of the sellers.

Please answer only E,F,G,H

Solutions

Expert Solution


Related Solutions

The demand and supply for orange juice are given by Qd = 30−P and Qs =...
The demand and supply for orange juice are given by Qd = 30−P and Qs = 4P. (a) Solve for the equilibrium price and quantity. (b) Suppose now the government imposes a per-unit tax of $2.5 on the sellers. (c) Solve for the new quantity, net price sellers received, and price consumers paid. (d) Calculate the government revenue from the taxation. I only need these answered: (e) Calculate the deadweight loss resulting from the taxation. (f) What portion of the...
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.
market demand is given as QD = 40 – P. Market supply is given as QS...
market demand is given as QD = 40 – P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 3Q. What is the number of firms in the market?
Suppose demand and supply are given by Qd = 50 - P and Qs  = 1.0P -...
Suppose demand and supply are given by Qd = 50 - P and Qs  = 1.0P - 20. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: ______________ Equilibrium price: $ ___________________ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $44 is imposed in this market. Quantity demanded: ______________ Quantity supplied: ______________ Surplus: ________________ c. Determine the quantity demanded, the quantity supplied, and the magnitude of...
Consider the following Market Demand and Supply Curves. Qd = 30-P Qs = P a.What is...
Consider the following Market Demand and Supply Curves. Qd = 30-P Qs = P a.What is the equilibrium quantity and price? b.What is the Consumer Surplus? c.What is the Producer Surplus? d.If the world price is 15, how much will be imported?
Consider the following Market Demand and Supply Curves. Qd = 30-P Qs = P a.If the...
Consider the following Market Demand and Supply Curves. Qd = 30-P Qs = P a.If the world price is 5, 1.how much will be imported? 2.What is the change in Consumer Surplus? 3.What is the change in Producer Surplus? b. If a tariff of $2 is imposed 1.how much will be imported? 2.What is the change in Consumer Surplus as a result of tariff? 3.What is the change in Producer Surplus as a result of tariff? 4.What is the government...
Demand is given by the equation QD=100-P; supply is given by QS= 4P Suppose the world...
Demand is given by the equation QD=100-P; supply is given by QS= 4P Suppose the world price of each unit is $25. Now assume that this economy is open to world trade. How many units will they import or export? Calculate the consumer surplus, producer surplus and total surplus. Help me solve, A Continue to assume that this economy is open to world trade. Suppose the government enacts a tariff off $2 per pound of cocoa beans. Calculate the consumer...
The demand and supply equations for a product are given by QD = 20-P QS = -10 +2P
The demand and supply equations for a product are given by                         QD = 20-P                         QS = -10 +2P 1. Calculate the equilibrium price and quantity. 2. Calculate the price elasticity of demand and the price elasticity of supply at the above equilibrium point. 3. An excise tax of $1 per unit is imposed on the producers of the product. Calculate the new equilibrium price and quantity. Calculate the consumer and producer tax burden ( as a percentage of...
The supply and demand for squash are given by QD = 200,000 – 50,000P and QS...
The supply and demand for squash are given by QD = 200,000 – 50,000P and QS = 90,000P – 80,000, where P is price per pound and Q measures pounds of squash. a. What is the level of consumer surplus at the equilibrium price? b. What is the level of producer surplus at the equilibrium price?
Market demand is given as QD = 50 – 2P. Market supply is given as QS...
Market demand is given as QD = 50 – 2P. Market supply is given as QS = 3P + 10. Each identical firm has MC = 2.5Q and ATC = 2Q.   a. What quantity of output will a single firm produce? What is the price? b. Calculate each firm’s profit? What will happen to it in the long-run? Explain the process. c. Draw the individual demand, MR, supply and ATC curves. Show profit in the diagram
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT