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I need help on these 4 microeconomics questions: Question 9. Excise Tax [Ch.5] (1 mark) Use the following information to answer the questions below. The
I need help on these 4 microeconomics questions:
Question 9. Excise Tax [Ch.5] (1 mark) Use the following information to answer the questions below. The supply and demand schedules for peanut butter are given by the following equations: qupply = (P-4)/2 QDemand : (164))\"4 Question 1 (0.25 points) a. Graph the supply and demand curves of this market. Mark the market equilibrium price and quantity, as well as the areas for consumer surplus and producer surplus. Question 2 (0.25 points) b. Determine the value of consumer surplus and producer surplus for peanut butter. consumer surplus: $[Blank 1] producer surplus: $[Blank 2] Round off your answer to the nearest integer Question 3 (0.25 points) c. Now suppose that the government decides to implement an excise tax on producers of $3 perjar of peanut butter. What happens to the equilibrium quantity and price in this market? Draw a new graph of the market for peanut butter. In this new graph include the original demand and supply curves, and the new supply curve 52. In your graph, label the areas that correspond to government tax revenue with the excise tax, consumer surplus with the excise tax, producer surplus with the excise tax, and deadweight loss with the excise tax. Question 4 (0.25 points) d. Given the tax described in part (c), calculate the value of the consumer surplus with the excise tax, producer surplus with the excise tax, government revenue, and the deadweight loss due to the tax. consumer surplus with the excise tax: $[Blank 1] producer surplus with the excise tax: $[Blank 2] government revenue : $[Blank 3] deadweight loss : $[Blank 4] Round off your answer to two decimal placesStep by Step Solution
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