On the graph, identify the pre-tax market equilibrium price and quantity. » • Then, based on the scenario given, shift the appropriate curve and show the price consumers pay, price producers receive, and quantity bought and sold in the market. Always label graphs fully. (a) Scenario 1: Ownership taxes increase for new cars. Market is new cars.» (b) Scenario 2: The United States Medicare tax where employees pay 1.45% of their salary in tax and employers also pay 1.452% of the employee's salary in tax. Market is the market for labor at a business. »
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- Don't use chatgpt and make sure you include the graphs needed (a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay?(b) Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? (c) If you were a policymaker and wanted to promote a fat tax in the UK, whatwould you cover in your policy campaign?. Assume the following data describe the gasoline market: (a) Graph the demand and supply curves. (b) What is the equilibrium price? (c) If supply at every price is reduced by 6 gallons, what will the new equilibrium price be? (d) If the government freezes the price of gasoline at its initial equilibrium price, how much of a surplus or shortage will exist when supply is reduced as described in part (c)?The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month. if the government ubsidizing renting a house with 300 euro per month.What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.
- Price (dollars per gallon) S2 $5.50 3.50 2.50 D Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? 1) $2.00 O 2) $3.50 3) $2.50 4) $1.50Suppose the market demand and supply curves are as given below. In each case, quantity refers to milions of litres of gasoline per month; price is the price per litre (in cents). Pa400 - 240 Supply: P= 160 + 80 Given these demand and supply equations, the equilbrkum price is 220 cents and the equilibrium quantity is 7.5 milion litres. Suppose the government imposes a tax per itre, and as a result the quantity sold is 5.8 million litres. What is the new "consumer price" and what is the new "producer price"? The new price consumers pay is 260.8 cents. (Enter your response rounded to the nearest cent.) The new price producers receive is cents. (Enter your response rounded to the nearest cent.)1. Retail Promotion Programs Successful retail promotion programs have the capacity to generate additional producer surplus, but it depends en the size of the relative shifts in demand and supply. Please sketch out a supply and demand figure for RTE breakfast cereal sold in retail markets that adopt a promotion campaign; this program increases demand and also leads to an increase in advertising cests that is paid for by the retailer. Now assume (and label your figure) with the following: the initial equilibrium quantity was 100,000 boxes, the quantity with the promotion in place is 105,000 boxes, the initial price was $10 per box, the price with the promotion in place is S10.15 per box, and initial fixed costs were $2 per box. Would the promotion efforts be worthwhile to retailers if: a) b) c) The promotion was funded by a $0.20/box fee? A S0.50 fee/box? A S0.60 fee/box?
- 1. Please explain what would happen to the market-clearing prices and quantities of e- cigarettes in the U.S. under the following hypothetical scenarios. b. The federal government imposed a $1 per pack excise tax on cigarettes.Label axis and curves. Determine if the situation is a Demand or a Supply and specify which non-price determinants is involved. Illustrate on the graphs: o the new curve, the surplus OR shortage created the new Price at the new E 4. Answer the following scenarios for each of the next Non-Price questions c) The Canadian Government just announced that they will help new start-up companies in the industry of recycling plastics by providing substantial subsidies. Market of recyclingThe annual demand for imported oranges is given by the following equation:?? = 600,000 − 30,000?where ? is the price per kilogram and ?? is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:?? = 20,000? a. Suppose that a $1-per-gallon tax is levied on the price of oranges received by sellers. Use both graphic and algebraic techniques to show the impact of the tax on market equilibrium
- 3. To summary the market survey for local trip tour during school vacation, the right-hand table is shown. Quantity Quantity Demanded Supplied Price ($) Base on this table: 20 500 50 420 a) Define the equations of demand and supply for local trip tour. (20 marks) b) Find the equilibrium-price and equilibrium-quantity for local trip tour and draw a graph to show this market equilibrium. (15 marks) 40 150 60 340 250 80 260 350 100 180 4503. The demand for a product is given by the equation Qd = 500 - 2P, and the supply is given by Q = 100+ 3P. (a) Determine the equilibrium price and quantity. (b) The government imposes a price ceiling of $50. What will be the quantity demanded and quantity supplied at this price? (c) Calculate the shortage or surplus resulting from the price ceiling. (d) Discuss the potential consequences of the price ceiling on the market.Only typed answer and please don't use chatgpt (I)Consider the market for milk in Saskatchewan. If p is the price of milk (cents per litre) and Qis the quantity of litres (in millions per month), suppose that the demand and supply curves formilk are given by: Demand: p = 225 -15QD Supply: p = 25 + 35QS a.Assuming there is no government intervention in this market, what is the equilibrium price and quantity? Equilibrium Price = $165 Quantity = 4Liters b. Now suppose the government guarantees milk producers a price of $2 per litre and promises to buy any amount of milk that the producers cannot sell. What are the quantity demanded and quantity supplied at this guaranteed price? Please answer B.