1. The market demand curve is D(p) = 8p. The market supply curve is S(p)=2+2p. (a) What is the equilibrium price and equilibrium quantity? (b) Suppose the government taxes sellers one dollar for each unit of sales. What are the equilibrium price, equilibrium quantity, consumer surplus, seller surplus, collected tax, and deadweight loss compared to (a)? (c) Suppose the government subsidizes consumers one dollar for each unit of purchase. What are the equilibrium price, equilibrium quantity, con- sumer surplus, seller surplus, collected tax, and deadweight loss compared to (a)?

1. The government wishes to encourage students to become more literate in economics and is therefore giving a S10 per unit subsidy to the purchasers of microeconomics textbooks. Given the following demand and supply, what are the economic effects of this subsidy? Illustrate with a diagram. Show work. P= 100 - Qa P= 20 + 3Q. (1) (2) Original Price Original Output New Price Consumer Pays New Output New Price Producer Receives Benefit to consumer Benefit to producer Cost to government

2. Using the following graph, answer the following questions. Also, show/Label your answers for parts a-e on the graph as well. Price 20 18 16 14 12 10 6. 4 6 8 10 12 14 16 Quantity 2 a. Suppose a $4 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed? b. Suppose a $4 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

PRICE (Dollars per pack) 50 45 TAX REVENUE (Dollars) 40 35 30 25 400 360 320 At this tax amount, the equilibrium quantity of cigarettes is government collects $ in tax revenue. 280 240 0 Suppose the government imposes a $10-per-pack tax on suppliers. 200 160 120 0 5 80 40 Supply Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. 0 Demand Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 10 15 20 25 30 35 40 45 50 QUANTITY (Packs) 5 True O False Graph Input Tool Market for Cigarettes Quantity (Packs) 10 15 20 25 30 TAX (Dollars per pack) Demand Price (Dollars per pack) Tax…

02. What would be the impact of a price ceiling of $ 9     (a) a shortage of 12 units.     (b) a shortage of 9 units.     (c) a new equilibrium quantity would be established.     (d) a surplus of 20 units.     (e) a surplus of 12 units.

Suppose a market is described by the following demand and supply curves, respectively: Qd =50−P Qs = 0.5P − 10 (a) Calculate the equilibrium price and quantity.(b) Plot the supply and demand curves on a single graph. (c) Now, supposed the government imposes a price ceiling of $30 in this market. Show, on the same graph in part (b), the effect of this price ceiling. Calculate the equilibrium price and quantity. Is there a shortage or a surplus? Of how many units? What is the full economic price in this market? Show, on the same graph in part (b), the loss of social welfare and calculate the dollar value of this loss.

1. The equilibrium price of juice was initially $1.80 per bottle, and the equilibrium quantity was 8,000 bottles per day. When the government imposed a tax of $0.50 per bottle, the price went up to $2.18 per bottle, and quantity fell by 12%. A) How much of the tax (in $/bottle) are the buyers paying? B) How much of the tax (in $/bottle) is shouldered by the sellers? C) After the tax is imposed, how many bottles will be consumed?

need help with question 2 (a) Draw the demand and supply curves from the data in Table 1. (b) What is the equilibrium quantity demanded and supplied? The government now imposes a specinc tax of £3 per unit. (c) Show the effect of this on the diogram (d) Whot is the new equilibrium quantity demanded and supplied? (e) What is the new equilibrium price?' (f What is the incidence of tax per unit on i) the consumer and (i) the producer? (g) What is (1) the tax per unit and (i) total government revenue from the tox? (h) By how much will the before tox revenue or producers changer

12 . Problems and Applications Q10 A market is described by the following supply and demand curves: QSQS  =  =  3P3P QDQD  =  =  400−P400−P   The equilibrium price is   and the equilibrium quantity is   .   Suppose the government imposes a price ceiling of $80. This price ceiling is    , and the market price will be   . The quantity supplied will be   , and the quantity demanded will be   . Therefore, a price ceiling of $80 will result in    .   Suppose the government imposes a price floor of $80. This price floor is    , and the market price will be   . The quantity supplied will be   and the quantity demanded will be   . Therefore, a price floor of $80 will result in    .   Instead of a price control, the government levies a tax on producers of $40. As a result, the new supply curve is: QSQS  =  =  3(P−40)3P−40   With this tax, the market price will be   , the quantity supplied will be   , and the quantity demanded will be   . The passage…

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