Question
In: Economics
Suppose you have a demand curve of P = 10 - Q and a supply curve...
Suppose you have a demand curve of P = 10 - Q and a supply curve of P = 2 + Q. If the government imposes a tax of $8 per unit of quantity sold on the sellers in this market, then what is the market quantity traded as a result of the tax? Then, what are the consumer surplus, producer surplus, and deadweight loss (after the $8 tax)?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
a. Suppose the demand function P = 10 - Q, and the supply function is: P...
a. Suppose the demand function P = 10 - Q, and the supply
function is: P = Q, where P is price and Q is quantity. Calculate
the equilibrium price and quantity.
b. Suppose government imposes per unit tax of $2 on consumers. The
new demand function becomes: P = 8 – Q, while the supply function
remains: P = Q. Calculate the new equilibrium price and quantity.
c. Based on (b), calculate the consumer surplus, producer surplus,
tax revenue,...
Suppose the demand function P = 10 - Q, and the supply function is: P =...
Suppose the demand function P = 10 - Q, and the supply function
is: P = Q, where P is price and Q is quantity. Calculate the
equilibrium price and quantity.
b.Suppose government imposes per unit tax of $2 on consumers.
The new demand function becomes: P = 8 – Q, while the supply
function remains: P = Q. Calculate the new equilibrium price and
quantity.
c.Based on (b), calculate the consumer surplus, producer
surplus, tax revenue and the deadweight...
Suppose the supply curve for steel is given by P=Q and the demand for steel is...
Suppose the supply curve for steel is given by P=Q and the
demand for steel is given by P=100- 2Q. The production of steel is
associated with a constant external cost of $10 per unit.
a. Calculate the private equilibrium. What are equilibrium price
and quantity?
b. What is the deadweight loss associated with the private
equilibrium. Calculate and draw a sketch.
A small country’s demand curve is given by Q=10-(P/2) and its supply curve is given by...
A small country’s demand curve is given by Q=10-(P/2) and its
supply curve is given by Q=P-5. Assume that there is initially free
trade and that the world price under free trade is $7. If an import
quota of 1.5 is now introduced in this country, what will be the
change in this country’s government revenue (everything else being
equal) if foreign firms have to acquire an import licence at full
value?
A
increases by 7
B
increases by 3...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations:
Supply: p = 10 + q
Demand: p = 100 − 2q
Show your work as your respond to the following
questions.1
(a) What is the market equilibrium price and quantity?
(5%)
(b) What is the Total Surplus at equilibrium? (5%)
(c) The government enacts a price ceiling at ¯p = 50. What is
the Total Surplus?
D）Calculate the Consumer Surplus under a price ceiling of ¯p =
20.
(e) What is the...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p =
10 + q Demand: p = 100 − 2q Show your work as your respond to the
following questions.
(a) What is the market equilibrium price and quantity?
(b) What is the Total Surplus at equilibrium?
(c) The government enacts a price ceiling at ¯p = 50. What is
the Total Surplus?
(d) Calculate the Consumer Surplus under a price ceiling of ¯p =
20.
(e) What is the Deadweight...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations:
Supply: p = 10 + q
Demand: p = 100 − 2q
Show your work as your respond to the following questions.1
(a) What is the market equilibrium price and quantity? (5%)
(b) What is the Total Surplus at equilibrium? (5%)
(c) The government enacts a price ceiling at ¯p = 50. What is
the Total Surplus?
D）Calculate the Consumer Surplus under a price ceiling of ¯p =
20.
(e) What is the...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p =
10 + q Demand: p = 100 − 2q Show your work as your respond to the
following questions.
(a) What is the market equilibrium price and quantity?
(b) What is the Total Surplus at equilibrium?
(c) The government enacts a price ceiling at ¯p = 50. What is
the Total Surplus?
(d) Calculate the Consumer Surplus under a price ceiling of ¯p =
20.
(e) What is the Deadweight...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations:
Supply: p = 10 +
q
Demand: p = 100 −
2q
Show your work as you respond to the
following questions.
What are the market equilibrium price and quantity?
(5%)
What is the Total Surplus at equilibrium?
(5%)
The government enacts a price ceiling at ¯p =
50. What is the Total Surplus? (5%)
Calculate the Consumer Surplus under a price ceiling of
¯p = 20. (5%)
What is the Deadweight Loss...
There are 2 countries, A and B. They each have a demand curve: P=60-Q The supply...
There are 2 countries, A and B.
They each have a demand curve: P=60-Q
The supply curve for A is: P=Q
The supply curve for B is: P=3Q
A) Calculate
the market clearing price and quantity for each country separately.
Calculate CS and PS for each country. (8 answers, 0.5 points
each)
Now assume the countries can trade at a world price of: P=36
B) Find the quantity demanded and the quantity supplied
in each country. Calculate the new CS and...
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