Find consumer surplus-producer surplus-deadweight loss

Assignment Help Business Economics

Reference no: EM131195203

Demand: Qd = 2000 –12P Supply: Qs = -400 + 8P, with no price floor or price ceiling. Now the government imposes an excise tax of $20/unit on the consumers

a. In the demand-supply graph, draw the implied demand after the excise tax

b. What is quantity traded? What price do buyers pay? What price do suppliers receive?

c. Find consumer surplus, producer surplus, deadweight loss, and tax revenue.

d. Identify CS, PS, DWL, and Tax revenue in the graph

e. Compare buyers and producers contribution to tax revenue.

Reference no: EM131195203

Questions Cloud

How do firms decide what kind of labor to hire : "How do people decide how much to work?" Time is scarce resource you may know this very well as a student. There's just not enough time to do everything we'd like to do. How do we decide how much of our time to spend working? "How do firms decide w..

What are the cultural influences on training and development : What are the cultural influences on training and development? Provide two examples. Discuss the effects of cultural continuity and change on organizational succession planning. Provide two examples.

Why should companies value diversity now : Why should companies value diversity now? What are the benefits? What are the characteristics that make us different? Should these diverse characteristics be embraced in the workplace? If so, why or why not?

Explains real-business-cycle models : The textbook explains real-business-cycle (RBC) models and how each one impacts ?uctuations on employment, unemployment, or output. Discuss relevant policies that impact these areas of fluctuation with emphasis on the policy’s goals and intended effe..

Find consumer surplus-producer surplus-deadweight loss : What is quantity traded? What price do buyers pay? What price do suppliers receive? Find consumer surplus, producer surplus, deadweight loss, and tax revenue.

Research online for an instructional resource : Research online for an instructional resource addressing each bullet point below. These can include articles, whitepapers, how-to guides, tutorial videos, etc.

Strategic analyst for a large consulting firm : Evaluate the external issues that are affecting the company and have driven it to employ a strategy that has resulted in moving jobs offshore.

What part of the business cycle us economy is currently in : Can you make a decision of what part of the business cycle the U.S. economy is currently in? Why? What factors lead you to this conclusion? You may want to do additional research of sources to reach a conclusion.

Algorithms are used to maintain routing tables : Complex routing algorithms are used to maintain routing tables. What algorithms are used, and how do they work? What are the advantages and disadvantages of each? Which ones are most commonly used in today's networks?

User Account

All Pages