Suppose the demand and supply functions for a product are given by Pd = 200 - 3Qd and Ps = 40 + 2Qs, respectively. A $25 per unit subsidy is given to buyers. The equilibrium quantity will increase by (Note: If your answer is a whole number, then there is no need to round to 2 decimal places.)
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- The inverse supply function for gum is PS = 4 + QS. The inverse demand function for gum is PD = 16 - QD. By how much does producer surplus decrease when a $2 tax on production is implemented? (Please round your answer to 1 decimal place, e.g., 1.2, -3.4).Suppose the demand and supply functions for a product are given by Pd = 200 - 3Qd and Ps = 40 + 2Qs, respectively. A $25 per unit subsidy is given to buyers. With the subsidy, how much less buyers will pay for a product? (Note: If your answer is a whole number, then there is no need to round to 2 decimal places. If your answer is "200 dollars", please key in 200 directly without any unit or dollar sign.)Chick-Thai is the only store sells chicken sandwiches around Santa Barabar, where the inverse demand function of chicken sandwiches is p(q) = 50 – 2g. The cost function of the chicken sandwiches is C(q) = + 1lq + 10. After the protest from the angry crowd, the government decides to grant a $1 subsidy for each unit of sandwiches sold. By how much will the price of chicken sandwiches change after the subsidy? Round your answer to 2 decimal points. (If you find the price will increase by 5 dollars, put in "5"; if you find the price will decrease by 3.15 dollars, put in "-3.15".) Answer:
- A project requires signing buying 500 cubic yards of concrete per week for the next year from the only local provider. The currently price is $100 per yard and the provider sells 5,000 yards per week. Assuming marginal cost is constant, elasticity of demand at the current price is -1.5.The METB (marginal excess tax burden) is 0.2. a) find opportunity cost of the weekly government purchase (Opportunity Cost = Total Revenue – Economic Profit) b)find original demand and the new demand (Qd = a – b(P)) C)find the new price, and the new quantity purchased by those other than the government in the process.the inverse demand function for mangos is p=6-0.5q, where q is the number of crates that are sold. The inverse supply function is p=q. In the past there was no tax on mangos but now a tax of 3$ per crate has been imposed on suppliers. What are the quantities produced before and after the tax was imposed? How much tax is raised?Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P Dx 160000-350P Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece. a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case? b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam. c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
- The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.The demand curve in the market of grapefruit is Qd = 120 - 2Pd and the marginal cost of production is constant at $38. If a tax of $17 is imposed, the price received by the producers is $[Answer] less for each unit sold. (In decimal numbers, with two decimal places, please.) Note: don't use any ai bot tool.The estimated demand function for avocados is Q = 160 – 40p, where p is price of avocados. The estimated supply function for avocados is Q = 50 + 15p. Using algebra, determine how price and quantity change when a €0.55 per lb specific tax is imposed on this market.
- Example 2: In fall of 2011, the National Christmas Tree Association decided to impose a fee/tax of $0.15 per tree sold.² They claimed the tax revenue raised would fund a new marketing campaign for Christmas tree growers in response to growing plastic tree imports. The proposal quickly drew controversy: some argued that the fee/tax would be passed along in higher prices to consumers, but the National Christmas Tree Association says no. How does the answer to this question depend on the assumption about the price elasticity of demand? a. Consider two graphs of the market for Christmas trees. The supply curve in each market is assumed to be the same. In the left graph, assume the price elasticity of demand is relatively inelastic and in the right graph, assume the price elasticity of demand is relatively elastic. Add labels on your diagram to identify the equilibrium price and quantity of trees before the tax. b. Now, suppose retailers are assessed a tax of amount for each tree sold.…Consumers' Surplus The demand function for a certain brand of CD is given by p = -0.01x? - 0.1x + 19 where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus (in dollars) if the market price is set at $7/disc. (Round your answer to two decimal places.) $ 225 The units in the original equation are in thousands. Need Help? Read It Master It Submit AnswerThe demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes. [In order to insure that we all do this problem in the same way, let’s assume that the tax is imposed on the supply side of the market. In addition, the burden of the tax on demanders is the difference in price demanders pay when the tax is in existence less the price they paid when there was no tax. The burden on suppliers is the difference in price suppliers received when there was no tax and the net price (after remitting tax to the government) they receive when the tax is in existence.]