QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Total surplus after tax

QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Total surplus after tax

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q.…

A: Given, Demand: P = 100 - 2Q Supply: P = 20 + 6Q Tax levied on buyers = 8 TL

Q: Given the following information Qo= 240-5P Qs-P where Qp is the quantity demanded, Qs is the…

A: Equilibrium is achieved where quantity supplied by seller equals quantity demanded by the buyer.

Q: Question 2c - part 1 Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Given, the total surplus in the market is 1730 taka. You know that the consumer surplus in the…

A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…

Q: QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the…

A: Tax imposed on sellers would result in seller get less amount that what the buyer pays. The buyers…

Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

A: QD = 240 - 5P P = 48 - 0.2Q QS = p Equilibrium price: 240-5P =P 6P = 240 P= $40 Q=240-5*40 Q= 40…

Q: Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the…

A: Given, The demand curve, QD = 240 – 5P The supply curve, QS = P Tax amount = T= $12 Before tax,…

Q: Given the following information Qp = 240 – 5P Qs = P where Qp is the quantity demanded, Qs is the…

A: Consumer surplus refer to the difference between the maximum willing to accept price and actually…

Q: Question 21 - part 2 Given the following information 2D 240-5P where QD is the quantity demanded, QS…

A: Answer to the question is as follows :

Q: Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the…

A: Question 2i: QD= 240 - 5P Qs = P Tax = $12 on sellers Equilibrium before tax: QD=Qs 240-5P = P 6P =…

Q: Given the following information QD= 240-5P QS= P where QD is the quantity demanded, QS is the…

A: Given information: Demand equation: 240-5p Supply equation: p Imposition of a $12 per unit tax.

Q: Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the…

A: ANS QD=240-5P QS=P At equilibrium QD=QS ∴240-5P=P ⇒6P=240 ⇒P=2406=40 Therefore, the equilibrium…

Q: Given the following information Q = 240 - 5P Qs =P where is the quantity demanded, Qs is the…

A: With the impair of tax price received by seller decreases.

Q: Given the following information Qd = 240 – SP Qs = P Where Qd is the quantity demand, Qs is the…

A: We first need to find quantity and price before tax. we have Qd=240-5P and Qs=Pat equilibrium,…

Q: Given the following information QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the…

Q: Assume that the demand and the supply in a market are represented by the following equations:…

A: QD=200-5P QS=5P-10 Equating supply and demand 200 - 5P = 5P - 10 210 = 10 P P = 21 Q = 105 - 10 =…

Q: Suppose the following demand and supply function of a commodity.…

A: Suppose the following demand and supply function of a commodity. Qd = 55 - 5P Qs = -50 + 10P…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…

Q: The market demand and supply functions for a good are: QD = 260 - 50P and QS = -40 + 10P. The…

A: Given demand and supply equations are: QD = 260 - 50P QS = -40 + 10P

Q: Given the following information QD = 240 - 5P QS = P where QD is the quantity demanded, QS is the…

A: QD = 240 - 5P QS = P At Equilibrium Price, QD = QS 240 - 5P = P 6P = 240 P = 40 Put P = 40 QD = 240…

Q: Given the following information QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the…

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Q: Question 3 Given the following information QD =240-5p QS = p Where QD is the quantity…

A: Given:Tax=$12QD=240-5pQS (after tax)=p-12

Q: Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is…

A: The demand(dd) curve is a downward-sloping curve representing the inverse relation b/w the price(P)…

Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

A: Hi student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: GIVEN THE FOLLOWING QD=240-5P QS=P WHERE QD IS THE QUANTITY DEMANDED, QS IS THE QUANTITY SUPPLIED…

A: After the imposition of tax the consumer surplus declines as price paid by consumer increases…

Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…

Q: given the following information Qd=240 -5p and Qs= P Where Qd is the quantity demanded and Qs is the…

A: Before tax of $12, the price(P) in the market is $40 and Q(quantity) is 40 units, which is seen…

Q: Given the following information QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the…

A: QD = 240 – 5P QS = P These equations can be rewritten as 5P = 240 - Q P = 48 - 0.2Q After Tax on…

Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…

A: Equilibrium price, is such a price at which quantity demanded QD equals quantity supplied QS QD =…

Q: Question 2c - Part 2 Given the following information Qp = 240 - 5P %3! Qs = P where Qp is the…

A: Producer surplus measures the difference between market price and the minimum price consumer is…

Q: Price Supply A P, per "unit tax ! P, D. P2 F G

A: Producer surplus represent the difference among the amount producer is willing to supply for real…

Q: Given the following information Qd = 240 – SP Qs = P Where Qd is the quantity demand, Qs is the…

A: (i). We have given quantity demanded and quantity supplied equations,let Pb is the price for…

Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

A: Answer to the three sub parts are as follows :

Q: Given the following information Q, = 240- 5P %3D Qs = P where Qp is the quantity demanded, Q, is the…

A: Equilibrium is achieved where quantity supplied by the producer matches quantity demanded by the…

Q: Suppose the equilibrium price and quantity in a market are P=$3 and Q=40. If there is a ten cent tax…

A: Answer: option c ($3.80) Explanation: Government revenue=Tax amount×quantity after taxGovernment…

Q: The demand for a commodity is given by QD=200-P, and the supply by QS=50+P. What is the equilibrium…

A: Qd = 200-P Qs = 50+P Tax = $10 Let’s Solve these equations algebraically to find equilibrium P and Q

Q: Quantity Demanded: QD= 240-5P Quantity Supplied: QS= P Suppose the government decides to…

A: A tax is a monetary surcharge imposed by the government on the production or consumption of a good…

Q: Given the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the…

A: Equilibrium is achieved where quantity supplied equals quantity demanded.

Q: Market demand for Mandrake roots is given by 261-2P and market supply is given by Q = 4P. The…

A: The law of supply and demand is a theory that describes the interaction between the seller of the…

Q: Given: Qd = 240 - 5P Qs = P Where Qd is the quantity demanded, Qs is the quantity supplied and P…

A: After the imposition of tax price paid by consumer increases and price received by producer…

Q: iven the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the…

A: Total surplus is the sum of consumer surplus and producer surplus

Q: The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=320−5P…

A: Demand function: QD=320−5P Supply function: QS=−40+5P

Q: Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Consider a market where the demand and supply for the good are described by the following equations:…

A: QD= 225-3P QS=-22.5 +1.5P It can be written as, P=(225-Q)/3 P= (-22.5-Q)/(-1.5) P=(22.5+Q)/1.5+3…

Q: Given the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the…

A: ANS Given; QD=240-5PQS=P At equilibrium QD = QS ∴240-5P=P⇒6P=240⇒P=2406=40 Putting P = 40 in the…

Question

QD = 240 - 5P

QS = P

where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine:

Total surplus after tax

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
Question 2g Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Tax revenue
The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss
Question 2e - part 2 Given the following information Q = 240 - 5P Qs = P where Q, is the quantity demanded, Qs is the quantity supplied and Pis the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Seller's pnice after tax
Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Quantity after tax
Suppose the market for cigarette is competitive. An economist estimates the price elasticity of demand and supply for cigarette are -0.8 and 0.7 respectively. Suppose the government imposes a per-unit tax of $45 on the cigarette sellers. By how much would buyers share the tax burden respectively? Show your calculation.
The demand and supply equations for a product are: Q* = 0.2 300 – 6P and Q' = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.
The demand and supply equations for a product are: Qd = 300 - 6P and Qs = -40 + 6P. Determine the market equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumer pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graphs and explain. Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss.
If a tax of $1.20 is imposed on consumers in this market, what is the tax revenue?
Suppose an economist estimates the price elasticity of demand for sugary drinks is -4.2, while its price elasticity of supply is 1.2. If the government decides to impose a per-unit tax of $9 per can of sugary drinks sold, how would the market price of sugary drinks be affected? Show your calculation
Price Pa Pb ££ Pc Qt Q* Supply Demand Quantity The government imposes an excise tax on the market, what is the size of the tax? A) Pa-Pb B) Pa-Pc C) Pb-Pc D) Pb
iven the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the total surplus after tax.