Welfare effects of a per unit tax

Assignment Help Business Economics

Reference no: EM13742199

Welfare Effects of a Per Unit Tax

Given the Qd = 1000 - p and Qs = 3p-120, suppose the government imposes a per unit tax of $64:

Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**).

Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.

Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus (i.e. the deadweight loss) from the market without the tax (see your answers in question #1).

Reference no: EM13742199

Questions Cloud

What is the area of the triangle shaded in blue : ADVANCED ANALYSIS Assume the following values for Figures 4.4a and 4.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $55 per bag. The price at a is $95 per bag. The price at c is $5 per bag. The price at d is $59 per bag..

Find this as a real economic indicator : Explain how the United States calculates unemployment and why many economist do not find this as a real economic indicator. How is unemployment calculated in other countries? Give two examples. What are your thoughts and ideas on this?

Elements of a contract scenario : Jack had a successful family-operated antique and curio business at a local flea market. Every weekend, he would scour community newspapers, flyers, bulletin boards, and homemade road signs and so forth, for yard or garage sales.

Determine the optimal internal layout for the facility : The memory chip manufacturer, having identified the appropriate location for its major production facility, now wants your team to determine the optimal internal layout for the facility based on the following criteria:

Welfare effects of a per unit tax : Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**). Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.

Explain the pieace of painting : Art History Paper, mainly talks about a pieace of painting and also use another painting as a comparison.

Game theory-concepts in your life and work now and in future : Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?

Gross domestic product and interest rates : Gross Domestic Product (GDP) and Interest Rates" Please respond to the following:

Dry ice in the immediate aftermath of a natural disaster : Explain the practical effect of price controls on product and service availability, quality and true cost. What is the full impact of rent controls? On whose behalf are they imposed? Who are the winners and who are the losers? What is the impact of p..

User Account

All Pages