Excise tax is levied on the buyers of a good

Assignment Help Business Economics

Reference no: EM135572

Q. 1. Suppose the demand for a product is given by P = 30 - 3Q. Also, the supply is given by P = 10 + Q. If a $4 per-unit excise tax is levied on the buyers of a good, then after the tax buyers will pay_for each unit of the good.

A) $4
B) $5
C) $18
D) $14
E) None of these

2. Suppose the demand for a product is given by P = 100 -2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, then after the tax the sellers will receive_for each unit of the good.

A) $82
B) $80
C) $74
D) $9
E) None of these

3. Suppose the demand for a product is given by P = 100 -2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, what proportion of the tax will be paid by the buyers?

A) 40%
B) 60%
C) 25%
D) 75%
E) None of these

4. Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q. If a $10 per-unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax will be

A) $5
B)$10
C) $20
D) $40
E) None of these

5. Suppose the demand for a product is given by P = 60 -2Q. Also, the supply is given by P = 10 + 3Q. If a $10 per-unit excise tax is levied on the buyers of a good, consumer surplus is equal to

A)$10
B) $20
C) $64
D) $128
E) None of these

6. Suppose the demand for a product is given by P = 50 -Q. Also, the supply is given by P = 10 + 3Q. If a S12 per-unit excise tax is levied on the buyers of a good, producer surplus is equal to

A) 49
B) 36
C) $73.5
D) 84
E) None of these

7. Suppose the demand for a product is given by P = 40 - 4Q Also, the supply is given by P = 10 + Q. If a S10 per-unit excise tax is levied on the buyers of a good, government revenue is equal to

A) $8
B)$10
C) S32
D) S64
E) None of these

8. Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, after the tax. the total amount of tax paid by the consumers is

A) 581
B) $72
C) $54
D) $4
E) None of these

9. Suppose the demand for a product is given by P = 50 -Q. Also, the supply is given by P = 10 + 3Q. If a S12 per-unit excise tax is levied on the buyers of a good, after the tax. the total amount of tax paid by the producers is

A) $21
B) $63
C) $18
D) $84
E) None of these

10. Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q. If a $5 per-unit excise tax is levied on the buyers of a good, after the tax. the total quantity of the good sold is

A)3
B) 4
C) 5
D) 17
E) None of these

Reference no: EM135572

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