Question 11 pts Suppose the demand for a product is given by P = 50 –Q. Also, th

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Question 11 pts

Suppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, then after the tax buyers will pay _________ for each unit of the good.

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Question 21 pts

Suppose the demand for a product is given by P = 30 – 2Q. Also, the supply is given by P = 5 + 3Q. If a $5 per-unit excise tax is levied on the buyers of a good, then after the tax sellers will receive _________ for each unit of the good.

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Question 31 pts

Suppose the demand for a product is given by P = 100 – 2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per-unit excise tax is levied on the buyers of a good, what proportion of the tax will be paid by the buyers?

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Question 41 pts

Suppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax will be

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Question 51 pts

Suppose the demand for a product is given by P = 50 –Q. Also, the supply is given by P = 10 + 3Q. If a $12 per-unit excise tax is levied on the buyers of a good, consumer surplus is equal to

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Question 61 pts

Suppose the demand for a product is given by P = 40 – 4Q. Also, the supply is given by P = 10 + Q. If a $10 per-unit excise tax is levied on the buyers of a good, producer surplus is equal to

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Question 71 pts

Suppose the demand for a product is given by P = 60 –2Q. Also, the supply is given by P = 10 + 3Q. If a $10 per-unit excise tax is levied on the buyers of a good, government revenue is equal to

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Question 81 pts

Suppose the demand for a product is given by P = 30 – 3Q. Also, the supply is given by P = 10 + Q. If a $4 per-unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the consumers is

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Question 91 pts

Suppose the demand for a product is given by P = 30 – 2Q. Also, the supply is given by P = 5 + 3Q. If a $5 per-unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the producers is

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Question 101 pts

Suppose the demand for a product is given by P = 30 – 3Q. Also, the supply is given by P = 10 + Q. If a $4 per-unit excise tax is levied on the buyers of a good, after the tax, the total quantity of the good sold is

Explanation / Answer

Question 11

Demand function is as follows -

P = 50 - Q

Tax of $12 per unit is levied on buyers

P = 50 - Q

P + 12 = 50 - Q

P = 50 - Q - 12

P = 38 - Q

Supply function is as follows -

P = 10 + 3Q

At equilibrium,

Demand = Supply

38 - Q = 10 + 3Q

4Q = 28

Q = 7

Price buyers will pay after tax is -

P = 38 - Q = 38 - 7 = 31

After tax, buyers will pay $31 for each unit of good.

The correct answer is the option (3).

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