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Economics
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13 Dec 2019

Suppose that the demand curve (hundreds) for apples is given by Qd = 160 - 10P, where Qd is the
number of pounds demanded per year and p is the price per pound. The supply of apples
can be described by Qs = 30 + 3P, where Qs is the number of pounds provided.

A. The government imposes a tax of $13 per each pound sold, paid by the consumers. In this case, what is the price and consumer surplus?

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17 Dec 2019
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Related questions

Taxation Question (SHOW ALL WORK)

Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds provided.

What is the equilibrium price? (Hint: At the equilibrium, quantity demanded and quantity supplied are equal, Qd = Qs.)

What is the equilibrium quantity supplied and demanded?

Calculate the consumer surplus at the equilibrium price.

Calculate the producer surplus at the equilibrium price.

Calculate the total surplus at the equilibrium price.

Now suppose that the government imposes a tax of $8 per each pound sold, paid by the producers. In this case, what are the price and the consumer surplus?

Suppose the market for cigarettes is characterized by the followinginformation:
Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply]
Suppose the government imposes a sales tax of $2 per unit.
i) Calculate the magnitude of the consumer surplus and producersurplus in the pre-tax equilibrium.
ii) Calculate the tax revenue in the post-tax equilibrium.
iii) Calculate the change in consumer surplus due to the salestax.
iv) Calculate the change in producer surplus due to the salestax.
v) Calculate the Dead-Weight-Loss due to the sales tax.
[Note: P = price per unit; Qd = thousands of units demanded; Qs =thousands of units supplied]

Suppose the market for farm machinery in Canada can be represented by the following equations:

 

                  Qd = 300,000  - 10 P  

 

                  Qs =  50,000  + (5/2) P

 

where Qd and Qs are, respectively, the quantity demanded and quantity supplied of farm machines per year and  P  is price of each machine (in dollars). Suppose the government imposes a $1,000 per unit tax on the purchasers.  The incidence of the tax can be described by:

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