Question

In: Economics

Consider a competitive market with demand and supply curves given by Qd(p) = 100 - P...

Consider a competitive market with demand and supply curves given by Qd(p) = 100 - P & Qs(P) = P

If the government wanted to charge a constant per unit tax of T per unit, what is the maximum amount of tax revenue the government can generate?

Solutions

Expert Solution


Related Solutions

1. Consider a perfectly competitive market where the demand and supply curves are given by QD...
1. Consider a perfectly competitive market where the demand and supply curves are given by QD = 500 − P and QS = −100 + 2P , respectively. Suppose that the government decides to tax the producers by $60 per unit sold. (a) Determine the pre-tax and after-tax equilibrium price and quantity. (b) Determine the loss in net benefits due to the tax. (c)Determine the percentage of the tax burden that falls on the consumers.
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...
Suppose there is a market and its competitive equilibrium. Demand P= 100-QD Supply P = 20...
Suppose there is a market and its competitive equilibrium. Demand P= 100-QD Supply P = 20 + QS/3. The government introduces the a subsidy of s = $4 per unit of good sold and bought. (a) Draw the graph for the demand and supply before subsidy, carefully determining all intercepts and relevant intersection points. (b) What is the equilibrium price and quantity before the subsidy and after the subsidy? (in the subsidy case, what price the buyers pay and what...
Consider a market where demand is given by P = 60 - ⅓ Qd and supply...
Consider a market where demand is given by P = 60 - ⅓ Qd and supply is given by P = 20 + ⅓ Qs. Consumer Surplus is ________ amd Producer Surplus is?
Consider a market where demand is given by P = 50 - Qd and supply is...
Consider a market where demand is given by P = 50 - Qd and supply is given by P = 10 + Qs. After a tax of t = 4 is placed on producers Producer surplus is between 180 and 200 Producer surplus is between 220 and 240 Producer surplus is between 160 and 180 Producer surplus is between 200 and 220
In a competitive market, the demand and supply curves are Q(p) = 18 - p and...
In a competitive market, the demand and supply curves are Q(p) = 18 - p and S(p) = 2p respectively. What is the price level in the competitive equilibrium?
Consider the cigarette market. The market demand for cigarettes is given by P=50-QD. The market supply...
Consider the cigarette market. The market demand for cigarettes is given by P=50-QD. The market supply of cigarettes is given by P=10+4QS. Suppose that the government designs a tax program to reduce the number of smokers; it imposes an excise tax of $5 per pack on cigarette producers. What is the tax incidence on producers? $7 $8 $28 $32 $35
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?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT