(Answered) Suppose the weekly demand for a certain good in thousands

Economics

Suppose the weekly demand for a certain good, in thousands of units, is given by the equation P = 8 - Q and the weekly supply of the good is given by the equation P = 2 +Q, where P is the price in dollars.

1. Calculate the total weekly economic surplus generated at the market equilibrium.

2. Suppose a per-unit tax of $2, to be collected from sellers, is imposed in this market. Calculate the direct loss in economic surplus experienced by participants in this market as a result of the tax.

3. How much government revenue will this tax generate each week? If the revenue is used to offset other taxes paid by participants in this market, what will be their net reduction in total economic surplus?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91418070
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question an economy has a saving rate of s 08 a

Question: An economy has a saving rate of s= .08, a depreciation rate of .02, a population growth rate of n= .03, and a growth rate of effective labor of g= .05. a. the capital-output ratio, k/y, for this economy is: b. ...

Question for the scenarios discussed below use supply and

Question: For the scenarios discussed below, use supply and demand curves and a graph to analyze what will happen to both price and quantity in equilibrium given the information available below. Graphs must be half a pag ...

Question consider an increase in the demand for petroleum

Question: Consider an increase in the demand for petroleum engineers in the United States. How would the supply of these engineers respond in the short run and in the long run? Conversely, consider a decrease in demand f ...

Question what features of medicare would cause an economist

Question: What feature(s) of Medicare would cause an economist to say that "Medicare stinks as insurance"? Medicare supplement insurance is available from the commercial market and most commonly covers ‘up-front' deducti ...

Question suppose you are ceo of a manufacturing company and

Question: Suppose you are CEO of a manufacturing company, and oil prices suddenly double, which boosts the inflation rate by 5%. While your principal job is to keep quarterly earnings rising, you are concerned that a rec ...

Question for the supply curve shown in figure 3-6 what does

Question: For the supply curve shown in Figure 3-6, what does the corresponding total variable cost curve look like? How about marginal cost? The response must be typed, single spaced, must be in times new roman font (si ...

Question older business cycle theories used to focus on

Question: Older business cycle theories used to focus on what was called the ‘‘interaction of the multiplier and the accelerator'' to produce endogenous business cycles; the accelerator said that investment was proportio ...

Question greg wants you to purchase corporate bond issued

Question: Greg wants you to purchase corporate bond issued by ACDP Manufacturing. It is a 25,000 bond with a bond rate of 8% payable quarterly, and it matures 10 years from today. Bob wishes to ear 10%(nominal,annual) on ...

Question identify 4 governance risks and explain what risk

Question: Identify 4 governance risks and explain what risk management strategies you would use to manage it and who would be responsible for thatIdentify 4 governance risks and explain what risk management strategies yo ...

Question is bitcoin an asset a commodity or currency does

Question: Is Bitcoin an asset, a commodity, or currency? Does it matter? How does one buy bitcoins? How are they created? Why were they created in the first place? What are they used for? The response must be typed, sing ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert