What price will sellers receive after the tax

Assignment Help Business Economics

Reference no: EM131424889

Suppose the market for grass seed can be expressed as

Demand: Q = 200 - 5p

Supply: Q= 40 + 5p

If the government collects a $5 per unit tax from sellers,

a) how much will the quantity demanded change from the amount demanded before the tax?

b) what price will consumers pay after the tax?

c) what price will sellers receive after the tax?

d) what is the tax revenue?

Reference no: EM131424889

Questions Cloud

Bonds of same maturity now sell to yield : Zang international Chinese chemical company has a 15% annual coupon interest rate on a $1,000 par value bond with 20 years left to maturity. Bonds of same maturity now sell to yield 11% return. How much would you be willing to pay for one of these bo..

According to the new growth theory : According to the new growth theory

Social security and other pension plans : Mr. White is planning to take early retirement. He has decided that he needs dollar 15000 per year to live on, for the first 5 years of his retirement; after that, his Social Security and other pension plans will provide him an adequate retirement in..

The prices of the two goods remain unchanged : Angela consumes only two goods, x and y. Her income doubles and the prices of the two goods remain unchanged. Assuming that she is a utility maximizer and likes both goods,

What price will sellers receive after the tax : How much will the quantity demanded change from the amount demanded before the tax? what price will consumers pay after the tax? what price will sellers receive after the tax?

Financial instruments such as bonds directly to the market : Why are large, publicly listed companies much more likely than small businesses to sell financial instruments such as bonds directly to the market, while small businesses get their financing from financial institutions such as banks?

Make demand more elastic with respect to price : Which of the following is likely to make demand more elastic with respect to price?

Resource under perfection completion : Now assume the following specific demand equation: p = 9 – 0.3q; r = 0.1; R= 80; mc = 2. Suppose the resource price is currently $3 per unit. What is the depletion year for this resource under perfection completion?

Government investment is zero-government-private saving : You are given the following information about an economy: Assuming that government investment is zero, find each of the following. Consumption = Private saving = Government saving.

User Account

All Pages