The demand and supply for a good are respectively QD = 80 – 5P and QS...

The demand and supply for a good are respectively QD = 80 – 5P and QS = - 40 + 20P. 1) Determine the equilibrium price. 2) Determine the equilibrium quantity. Suppose the government imposes a unit tax of 1.5 on producers. 3) Determine the price paid by consumers. 4) Determine the size of the tax that is supported by consumers. 5) Determine the price received by producers. 6) Determine the size of the tax that is supported by producers. 7) Determine the quantity purchased and supplied. 8) Determine the deadweight loss due to the tax

Expert Solution

Rahul Sunny answered 1 year ago

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 supply and demand for organic peanut butter are QD = 70 – 5P and QS...

The supply and demand for organic peanut butter are QD = 70 – 5P and QS = 5P, where P is price per jar and Q is in hundreds of jars per day. The government has two pieces of legislation up for debate: a $1 supply subsidy or a price floor equal to $7.50. Defend your answers with math and economic logic! No defense means no credit. A) Which law would be more efficient (i.e. result in less deadweight loss)?...

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: Qd = 200 – 5P Supply: Qs = 5PIf a quantity tax of $2...

Demand: Qd = 200 – 5P Supply: Qs = 5PIf 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 and the new price received by the supplier?(e) Calculate...

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

2. Supply, Demand and Elasticity: The demand for a product is Qd=200-5P-2Px and supply is Qs=10+2P,...

2. Supply, Demand and Elasticity: The demand for a product is Qd=200-5P-2Px and supply is Qs=10+2P, where Q is the quantity of the product, in thousands of units, P is the price of the product, and Px is the price of another good X. A. When Px = $25, what is the equilibrium price and quantity sold of the product? B. At the equilibrium price and quantity, what is the own price elasticity of demand for the product? C. What...

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 supply and demand functions for a good are respectively QS = 2P – 4 and...

The supply and demand functions for a good are respectively QS = 2P – 4 and QD = 60 – 2P + 2I, with I representing income, P the market price, QS the quantity supplied, and QD the quantity demanded. a) If I = 18, determine i) The equilibrium price; ii) The equilibrium quantity. b) Suppose the income increases to I = 22. Determine i) The quantity demanded at the initial equilibrium price; ii) The equilibrium price; iii) The equilibrium...

Let the market demand curve be QD=20-5P and the market supply curve be QS=5P-10. Let price...

Let the market demand curve be QD=20-5P and the market supply curve be QS=5P-10. Let price P be measured in $/unit and let quantity Q be measured in singular units (i.e. simple count). Solve for the inverse demand curve. Solve for the inverse supply curve. As best you can, graph the demand and supply curves, marked D and S, respectively. Mark the vertical and horizontal intercepts with the appropriate numerical values Solve for the equilibrium price P* and quantity Q*,...

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

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