Suppose that demand is given by P = 120 3Q, and supply is given by P

Question:

Suppose that demand is given by P = 120 − 3Q, and supply is given by P =

10 + Q.

a. What are the competitive equilibrium price and output?

b. If a per unit tax of $10 is imposed, what happens to the price paid by consumers, the price received by suppliers, and the quantity consumed?

c. Howmuch total tax is generated?

d. Who bears the burden of the tax?

e. Howmuch is the deadweight social welfare loss due to the tax?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Sports Economics

ISBN: 9780521876612

1st Edition

Authors: Roger D. Blair

See More Books

Question Posted: Nov 13, 2024 02:00 AM

See More Questions

Runnals National Bank has experienced the following trends over the past five years (all figures in millions of dollars): Input Area: 1 2 3 4 5 Net Income (after tax) 2.65 2.75 3.25 3.65 4.00 Total...
State whether the "other things constant" is likely to hold in the following supply/demand analyses: a. The impact of an increase in the demand for pencils on the price of pencils. b. The impact of...
Compute the fraction of the bandwidth that is wasted on overhead (headers and retransmissions) for protocol 6 on a heavily-loaded 50-kbps satellite channel with data frames consisting of 40 header...
Suppose that demand is given by P = 120 3Q, and supply is given by P = 10 + Q. a. What are the competitive equilibrium price and output? b. If a per unit tax of $10 is imposed, what happens to the...
Stock Dividends The Stockholders Equity category of Worthy Companys balance sheet as of January 1, 2010, appeared as follows: Common stock , $10 par, 40,000 shares issued and outstanding ....$400,000...
1 . What is the period 1 3 forecast using a 3 - period simple moving average ( rounded up to the nearest whole number ) ? 2 . What is the period 1 3 forecast using a 4 - period simple moving average...
Show that all of a unit tax is passed on to consumers if demand is perfectly inelastic.Who bears the tax burden if demand is negatively sloped and supply is perfectly inelastic?
Suppose a stadium costs $400 million to build and had a useful life of 30 years. How much operating profit is necessary each year to break even? Assume a 10 percent interest rate, no scrap value, and...
Derive Maxwell's relation among thermodynamic properties.
Problem 8.1: Considering the system of Figure P8.1. a. Use the angle criterion to show that the point s=-1+j is a point on the loci of roots of the characteristic equation for K0. b. Determine the...
Taxpayer Information: Taxpayer #1 Name: Keith Dox SIN: 805 127 115 DOB: August 13, 1987 Marital status: Married Address: 18 Page Place, Your City, YP, L3A 2N7 Phone number: (XXX) 369-7851 Email...
SP 3 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4, P5 After the success of the company's first two months, Santana Rey continues to operate Business Solutions. The November 30, 2021,...
Bruce and Emmett (B & E) is considering a significant equipment replacement. B & E would like to replace some of their equipment before December 31, 2019. The equipment originally cost $500,000 and...
Blossom Company had a January 1 inventory of $290000 when it adopted dollar-value LIFO. During the year, purchases were $1700000 and sales were $2900000. December 31 inventory at year-end prices was...
An ammeter whose internal resistance is 63 reads 5.25mA when connected in a circuit containing a battery and two resistors in series whose values are 750 and 480. What is the actual current when the...
Find the image of x = k = const under w = 1/z. Use formulas similar to those in Example 1. y| y = 0 -21 -2 -1 -1, /1 12 T -1 -1 y= -2 x =0

Suppose that demand is given by P = 120 3Q, and supply is given by P

Question:

Step by Step Answer:

Sports Economics

Students also viewed these Business questions