1. Suppose that the demand curve in the market forSchott-Zwiesel pure wine glasses can be represented by the following demand and supply equations:

Qd= 200 - 5P

Qs = 5P

1. Find the equilibrium price and quantity demanded
2. Find the equilibrium quantity with the tax.

The government decides to impose a tax of $10 per unit sold on Schott-Zwiesel pure wine glasses.

1. Find the price paid by buyers
2. Find the price paid by sellers.
3. Illustrate your answer in with a diagram
4. Calculate the Dead Weight Loss due to the tax
5. Calculate the consumer surplus after the tax.
6. Calculate the producer surplus after the tax
7. Calculate the tax revenue paid to the government
8. Calculate the share of the tax paid by the buyers

(2) US oil demand and supply can be represented by the following demand and supply model in million barrels per day:

Demand:Qd = 25 - 0.05P

Supply: Qs = 13 + 0.10P

Find the average price and quantity of oil demanded in the market?

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(3) The US government imposes sanctions on Russian oil imports into the US. This reduces

US oil supply by 3 million barrels per day. Using the information in (2).

Find the new average price and quantity of oil consumed in the US per day.

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(4). Graph the demand and supply curves from questions (2) and (3), then compute the consumer surplus before and after the oil sanctions.

a. Calculate the consumer surplus before the sanctions were imposed in question 1.

b. Calculate the consumer surplus after the sanctions were imposed in question 2.

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(5). Supposed the Federal Government imposed a per unit tax of $3 per barrel on US oil consumption to reduce energy consumption, rather than imposing the sanctions. Use the demand and supply equations from question (2) to calculate the following:

1. Price the buyers pay
2. Price the sellers receive
3. The quantity consumed with the tax
4. Plot the resulting tax diagram
5. Calculate the Dead Weight Loss
6. Calculate the amount of government tax revenue

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(6). The supply and demand schedules for avocadoes are as follows:

Price Per Pound	Quantity Demanded Per Year	Price Per Pound	Quantity Supplied per Year
$0.90	100,000	$0.60	100,000
0.80	110,000	0.70	120,000
0.70	120,000	0.80	140,000
0.60	135,000	0.90	150,000

Use a supply and demand diagram to answer the following questions.

a. What is the market equilibrium price and quantity?

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b. The government agrees to purchase as many pounds of avocadoes as farmers will sell at a price of $0.80 per pound. How much will the government purchase, how much will consumers purchase, and how much will be produced?

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c. Suppose the government policy in part b remains in effect, but consumer demand increases by 10 % (consumers will purchase 10% more at each price than they did before). What will be the effect on total apple output, purchases by consumers, purchases by government, and the price of avocadoes?

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d. Provide your Diagram.