The accompanying table gives the hypothetical demand and supply schedules for swordfish caught in the United...

 

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The accompanying table gives the hypothetical demand and supply schedules for swordfish caught in the United States per year. Price of swordfish (per pound) $32 Quantity of swordfish (millions of pounds per year) Quantity supplied 37 15 Quantity damanded 20 18 13 16 11 14 12 10 22 a) What is the equilibrium price and quantity? Illustrate in a diagram. b) Due to overfishing by the commereial fishing industry, the stocks of fish are seriously depleted. The National Marine Fishery Service of the U.S. government decides to impose an excise tax of $6 on each pound of fish in an effort to reduce the catch of swordfish. Illustrate the effect of this tax on your diagram in a. What is the demand price at which consumers will purchase swordfish? What is the supply price? c) Calculate the change in consumer's surplus as a result of the excise tax. d) Calculate the change in producer's surplus as a result of the excise tax. e) Calculate government revenue from the excise tax. What is the deadweight loss? The accompanying table gives the hypothetical demand and supply schedules for swordfish caught in the United States per year. Price of swordfish (per pound) $32 Quantity of swordfish (millions of pounds per year) Quantity supplied 37 15 Quantity damanded 20 18 13 16 11 14 12 10 22 a) What is the equilibrium price and quantity? Illustrate in a diagram. b) Due to overfishing by the commereial fishing industry, the stocks of fish are seriously depleted. The National Marine Fishery Service of the U.S. government decides to impose an excise tax of $6 on each pound of fish in an effort to reduce the catch of swordfish. Illustrate the effect of this tax on your diagram in a. What is the demand price at which consumers will purchase swordfish? What is the supply price? c) Calculate the change in consumer's surplus as a result of the excise tax. d) Calculate the change in producer's surplus as a result of the excise tax. e) Calculate government revenue from the excise tax. What is the deadweight loss?

Answer rating: 100% (QA)

The equilibrium occurs where the demand curve intersects the supply cur... View the full answer