Price $150 200 250 300 350 400 b. Belting i 450 500 550 600 650 b. Resulting amount of surplevshortage if any (0 if no 0 8. Remove the price floor. Impose a price ceiling $50 below the equilibrium price Equilibrium price $350 and quantity 50 Quantity Demanded 100 90 1. Equilibrium price $350 2. Quantity 50 3. Consumer Surplus? 6250 & Producer Surplus? 6250 5. What is the total surplus? 12500 & Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Equilibrium price $350 and quantity 50 of surplus/shortage of one o NO 70 60 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 20 80 90 100 . How much deadweight loss is created (0 if none)?

Price $150 200 250 300 350 400 b. Belting i 450 500 550 600 650 b. Resulting amount of surplevshortage if any (0 if no 0 8. Remove the price floor. Impose a price ceiling $50 below the equilibrium price Equilibrium price $350 and quantity 50 Quantity Demanded 100 90 1. Equilibrium price $350 2. Quantity 50 3. Consumer Surplus? 6250 & Producer Surplus? 6250 5. What is the total surplus? 12500 & Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Equilibrium price $350 and quantity 50 of surplus/shortage of one o NO 70 60 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 20 80 90 100 . How much deadweight loss is created (0 if none)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Price $150 200 250 300 350 400 450 500 550 600 650 1. Equilibrium price $350 2. Quantity 50 3. Consumer Surplus? 6250 4. Producer Surplus? 6250 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Fiquilibrium price $350 and quantity? 50 Quantity Demanded 100 90 5. What is the total surplus? 12500 6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 b. Resulting amount of surplus/shortage if any (0 if none) 0 8. Remove the price floor Impose a price ceiling $50 below the equilibrium price a Equilibrium price $350 and quantity? 50 b. Resulting amount of surplus/shortage (0 if none) o 80 70 60 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 70 80 90 100 . How much deadweight loss is created (0 if none)?
First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer handbags in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. PRICE (Dollars per handbag) 500 450 400 Demand 350 300 250 200 Before Tax Supply 150 100 50 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Handbags) + Equilibrium Consumer Surplus Producer Surplus ?
Figure 8-5 Price P3 P₁ P₂ A B D F -Tax- G 8₂ с E H a. F b. A+B+CX C. D+E d. A 9₂₁ S D Quantity O Refer to Figure 8-5. Which area represents producer surplus after the tax is levied on the producer?
1) Below is the demand and supply schedule for the market for personal chefs. These are chefs that are hired to come into the client’s home to prepare meals for them. Show all your calculations used to answer the following questions. d)calculate the excess demand or supply at the price of $35,$70,$25 and $65 e) If tax of 5$ imposed compute the consumer and producer tax burden Price per hour Qty supplied Qty demanded 20 0 29 25 1 26 30 3 23 35 5 20 40 7 17 45 9 14 50 11 11 55 13 9 60 15 7 65 17 5 70 19 3 75 21 1 80 23 0
If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal, producers receive net of the tax will equal 12 11 10 9 8 4321 10 20 30 40 50 60 70 80 90 and the price that [Fullscreen
1. Price $152 $144 $136 $128 $120 $112 $104 $96 $88 $80 572 S64 $56 $48 $40 $32 CORNW 524 $16 $8 SO 0 25 50 75 100 1₁ 125 150 - - Supply 175 200 Quantity 225 Demand A. Calculate consumer surplus at the equilibrium price and quantity B. Calculate producer surplus at the equilibrium price and quantity D. Calculate total surplus at the equilibrium price and quantity D. Shade the area of the graph that corresponds to total surplus 250 275 300 325 350 375
If a $6 per unit tax is introduced in this market, then the price that consumers pay will equal, producers receive net of the tax will equal and the price that 12 S 11 10 B 6 10 20 30 40 50 60 70 80 90
The vertical distance between points A and B represents a tax in the market. 22- Price 222 20 18- 16 14 12- 22 10 8 9 Supply Demand 100 200 300 400 500 600 700 800 900 1000 Quantity Refer to Figure 8-6. Total surplus with the tax in place is
Price 24 22 + 20 A 18 Supply 16+ B 14- 12 F 10 + D H G J 6- 4 K L M Demand 2- 3 6 9 12 15 18 21 24 27 30 33 36 39 Quantity Suppose the government imposes a $10 per unit tax on a good with a demand and a supply depicted in the above figure. One effect of the tax is to reduce consumer surplus by $108. reduce producer surplus by $72. create a deadweight loss of $60. All of the above are correct.
The graph represents the market for sweatshirts. After a $20 subsidy is given to consumers, which of the following statements is true? Tprice 50 45 40+ 35 30 25- 20- 15- 10- 5- +++ 100 200 300 400 500 600 700 800 quantity O A. Suppliers will receive $35 per sweatshirt and there will be a deadweight loss of $2000. B. The value of producer surplus is $1000 after the imposition of the subsidy. O C. The subsidy will cost the government less than $10,000.
S. $24 $15 D Quota 430 620 800 1170 How much is the decrease in consumer's surplus as a result of Quota?
(e) Draw a demand and supply diagram with a tax on the sale of the good. Show the quantity sold with and without the tax. Illustrate the price buyers pay and the price sellers receive with and without the tax. Illustrate and explain how the tax results in a deadweight loss.