Qd= 100-10P(buyers)
Qs= 15P(sellers)
Equilibrium Price and Quantity respectively are 4 and 60. Ithink...
1. Suppose an excise tax of $2.00 per unit is placed on the sale ofthis good. What will the post-tax equilibrium buyers' price,sellers' price, and quantity be?
... The previous parts of the question are equilibrium price andquantity and the price elasticities of supply and demand. I havethose, but this part of the question has me stuck. Please help.Thank you in advance.
Qs= 15P(sellers)
Equilibrium Price and Quantity respectively are 4 and 60. Ithink...
1. Suppose an excise tax of $2.00 per unit is placed on the sale ofthis good. What will the post-tax equilibrium buyers' price,sellers' price, and quantity be?
... The previous parts of the question are equilibrium price andquantity and the price elasticities of supply and demand. I havethose, but this part of the question has me stuck. Please help.Thank you in advance.
For unlimited access to Homework Help, a Homework+ subscription is required.
Related textbook solutions
Related questions
Look at the two tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables.
Consumers | Producers | |||||
Person | Maximum Price Willing to Pay |
Actual Price (Equilibrium Price) |
Person | Minimum Acceptable Price | Actual Price (Equilibrium Price) |
|
Bob | $16 | $10 | Carlos | $5 | $10 | |
Barb | 14 | 10 | Courtney | 6 | 10 | |
Bill | 13 | 10 | Chuck | 7 | 10 | |
Bart | 12 | 10 | Cindy | 8 | 10 | |
Brent | 11 | 10 | Craig | 9 | 10 | |
Betty | 10 | 10 | Chad | 10 | 10 |
a. Given the equilibrium price of $10, what is the equilibrium quantity given the data above?
Equilibrium quantity = ...... bag(s)
b. What if, instead of bags of oranges, the data in the two tables dealt with a public good like fireworks displays?
If all the buyers' free ride, what will be the quantity supplied by private sellers?
c. Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $3-per-bag tax on sellers.
What is the new equilibrium price? $
What is the new equilibrium quantity?
....bag(s)
If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before?
.....bag(s)