+1-415-670-9189
info@expertsmind.com
Calculate total market surplus before tax applied
Course:- Business Economics
Reference No.:- EM131094542




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

Continue to consider the market in which the supply and demand curves are described by the following information:

Vertical intercept for the supply curve: -120 (NEGATIVE 120)

Vertical intercept for the demand curve: 200

P*: $80

Q*: 600

A tax is applied to the market in the amount of $32 per unit. With the tax, sellers now receive a price of $60 per unit sold. You will have to calculate the price paid by buyers - but you have enough information to do so. With the tax, 540 units are sold.

Carefully following all numeric instructions, calculate total market surplus before (without) the tax applied.

Price Paid by buyers with tax-92

Market tax revenue- 17280




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Suppose that after the wage goes up in the Northern state, workers lose their jobs in the North and decide to move to the Southern state. This increases the population there.
Think of a goods and services market for coffee. A wild fire destroys half of the coffee bean crop. Which curve is affected and in what direction? What will happen to equilibr
Explain how did the invention of crack cocaine transform the urban street gang. As per the data cited in this chapter, civil rights laws and a shift in the attitudes in the
Assume that a monopoly has a linear demand curve. If it is charging the profit maximizing price, will the demand for its product at that price be elastic or inelastic? Explain
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the
Create your own games. You will need to set it up one normal form for a one-shot simaltaneous game and one shot sequential move game. These should be seperate games - not the
Discuss the approach of utility maximization considering consumer behavior. Do you know the examples that confirm this theoretical point of view? Emphasizing how knowledge of
On Juan's 26th birthday, he invested $6,500 in a retirement account. Each year thereafter, he deposited 7% more than the previous deposit. The account paid annual compound int