Consider the market for a good, where demand and supply are given by the following equations. P=34-Qd P=10+2 Q With the aid of a labelled diagram analyse the economic effects of a $3 per unit tax on this good, levied on producers. P Initial Equilibrium Price_ New Equilibrium Quantity_ New Producers' Price Burden of the Tax on Consumers Burden of the Tax on Producers Tax Revenue to the Government 1) Initial Equilibrium Quantity_ 12\ New Consumers' Price per unit per unit. 17 .1

need help with question 2 (a) Draw the demand and supply curves from the data in Table 1. (b) What is the equilibrium quantity demanded and supplied? The government now imposes a specinc tax of £3 per unit. (c) Show the effect of this on the diogram (d) Whot is the new equilibrium quantity demanded and supplied? (e) What is the new equilibrium price?' (f What is the incidence of tax per unit on i) the consumer and (i) the producer? (g) What is (1) the tax per unit and (i) total government revenue from the tox? (h) By how much will the before tox revenue or producers changer

1. Assume that the demand for cigarettes is Qd=1600-30P and the supply of cigarettes is Qs=1400+70P: a. Calculate the equilibrium price and quantity and show them on a supplyand demand diagram. b. Suppose the government levies a $2 tax for each unit of cigarettes sold.Draw this on the diagram and calculate the new equilibrium price andquantity. c. Calculate the price elasticity of demand given these two price andquantity points. Is the demand for cigarettes price elastic or inelastic onthis part of the demand curve? Interpret the elasticity in words (i.e. If theprices rises by 10%, by what percentage will consumption fall?) d. On a graph, identify the tax revenue generated by this tax. e. Indicate each area on the graph with a letter and show in a table theconsumer surplus and the producer surplus before and after the tax. Also,indicate the deadweight loss associated with this tax. f. If your policy advisor boss wanted you to provide him/her witharguments in favor of this cigarette…

retrieve sidebar contents. E PRICE (Dollars per case) 0 ===== Supply Demand 10 15 20 25 30 35 40 45 50 QUANTITY (Cases) Graph Input Tool Market for Wine Quantity (Cases) Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of wine is Demand Price (Dollars per case) Tay lax (Dollars per case) 20 30.00 10.00 cases, and the government collects s Supply Price (Dollars per case) 20.00 in tax revenue. Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. A

The accompnying graph depicts the market for socks. Adjust the graph to demonstrate what happens if the government imposes a $2.00/pair tax on poducers Market for socks 10 What is the new equilibrium quantity? 8: 7 12 pairs 6 What is the new equilibrium price? 4 6 What is deadweight loss created by the tax? 0 0 3 6 9 12 15 18 21 24 27 30 Quantity (pairs of socks) What is the government tax revenue? O rt (ed s) aou

Consider the market for natural gas, depicted in the figure to the right. Suppose a price ceiling of P₁ is imposed by the government. As a result of the price ceiling, there is a Compared with the market-clearing equili What area represents the loss in efficienc from the price ceiling? of natural gas. shortage iling efficient? er and producer surplus resulting Use the triangle drawing tool to shade in Loss'. Carefully follow the instructions above, and only draw the required objects. surplus el this shaded area 'Deadweight Price of natural gas P3 P₂ P1₁ Q₁ Q₂ Q3 Quantity of natural gas D Q

Why would a free market never operate at aquantity greater than the equilibrium quantity? Hint:What would be required for a transaction to occur at thatquantity?

11. that a market is described by the . Solve for the equilibrium price and the following supply and demand equations: Q$ = 2P QD = 300 – P %3D a. equilibrium quantity. h Suppose that a tax of T is placed on buyers so the new demand equation is QD = 300 – (P + T). %3D

I require help on solving the tax revenue and incidences for both producers and consumers.   Supply:  P=0.25Q Demand: P=300-0.75Q   Instead of a price control, government levies a $20 excite tax on producers. Formulate the new supply curve and solve for the new equilibrium price and quantity.   Calculate with a diagram the tax revenue and the tax incidences for both producers and consumers.  Discuss how buyers and sellers share the tax burden by applying relevant theories and an appropriate diagram.

ECON1000 - Principles of Economics 1 | S1 21/22 Time left 0:13:59 A tax is imposed on producers of a good. For a given supply curve, the more price elastic the demand for the product, the greater the tax incidence on uestion 16 t yet Swered ked out of Select one: a. producers.. b. the tax payer. C. consumers. O d. both consumers and producers equally. page Next page