Question: Repeat Exercise for a 50 sales tax instead of a 50 excise tax. Suppose the demand curve for oranges is given by the equation Q

Repeat Exercise for a 50¢ sales tax instead of a 50¢ excise tax.

Suppose the demand curve for oranges is given by the equation

Q = −200 • P + 1,000

With quantity (Q) measured in oranges per day and price (P) measured in dollars per orange. The supply curve is given by

Q = 800 • P

Compute the equilibrium price and quantity of oranges.


Step by Step Solution

★★★★★

3.42 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Supply Q 800 P De... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

231-B-E-P-T (2).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Suppose the demand curve for oranges is given by the equation Q = 200 P + 1,000 With quantity (Q) measured in oranges per day and price (P) measured in dollars per orange. The supply curve is given...

Q:

Suppose the demand curve for a product is given by Q 10 2P PS, where P is the price of the product and PS is the price of a substitute good. The price of the substitute good is $2.00. a. Suppose P...

Q:

Suppose the demand curve for a product is given by Q 300 2P 4I, where I is average income measured in thousands of dollars. The supply curve is Q 3P 50. a. If I 25, find the market-clearing...

Q:

i (a) What is the relative price of xd in terms of xh from the prime ministers point of view? (b) Find the policy bundle that maximizes the prime ministers utility subject to the govern- ments budget...

Q:

Question 10 (1 point) Suppose that the supply schedule can be represented by QS = -8 + 3P and the demand schedule can be represented by Q = 100 - 6P. Suppose the government introduces a price floor...

Q:

Solv all these questions (b) Assume these firms behave like price takers, how much will they produce and what price will they charge? Draw the outcome on a graph. What is the individual firms...

Q:

I have attached both the chapters from which you will be answering the following question. Ch 8 (p 387 of text or p 35 of the pdf) ?Exercise D. Prepare the bank reconciliation and any required...

Q:

What are Interfaces? Explain the Network Adage," Switch where you can; router where you must". pls explain in five hundrd wrds wd zero plagrsam

Q:

Please show your calculations and draw clear diagrams, so we can give you partial credit. (One note re MS Word - make sure you go to "Preferences" and click ON "View / Hidden Text") Part I : Short...

Q:

Part I : Short answer and T/F/U. (24 pts) For True, False or Uncertain (T/F/U) say whether the statement is T/F/U and provide a short explanation (not more than 10 lines) why. Some of these T/F/U...

Q:

1. You currently own a bond that has a 3% coupon rate, pays coupons annually, has exactly 3 years to maturity, and trades at a yield to maturity of 2.2%. If you hold the bond for one year and then...

Q:

Assume that supplies on hand at the beginning of the year amount to $60,000 and that supply purchases during the year are $400,000. Supplies on hand at year-end are $40,000, and the consumption basis...

Q:

Which of the following statements is correct? There is no difference between raw material and direct material. Raw material is reclassified as direct material when it enters the production process....

Q:

What is the procedure to alter the object clause of the memorandum of association? (Ref. Para-19.18)

Q:

Shoes are currently subject to an excise tax of $5 per pair, and they sell for a price of $20 per pair. a. If the excise tax is repealed, what can you say about the new price of shoes? b. If the...

Q:

Suppose the government simultaneously announces a new sales tax of 50 per gallon of gasoline and a new excise subsidy of 50 per gallon of gasoline. True or False: Even though they're being...

Q:

True or False: If the government imposes both a 50-per-cup excise tax and a 50-per-cup sales tax on coffee, then the price of coffee will not change.

Q:

Living Spaces sells living room sets. Sofa sells for $272 per unit and has variable costs of $155 per unit. Side Table sells for $46 per unit and has variable costs of $26 per unit. Living Spaces...

Q:

During the year, the Senbet Discount Tire Company had gross sales of $1.12 million. The firms cost of goods sold and selling expenses were $531,000 and $221,000, respectively. The firm also had notes...

Q:

Use the following Unadjusted Trial Balance for Acct 201 as of July 31, 2020 to answer Questions 11 and 12 (The information is based on Problem 3-5B, page 154): ACCT 201 Co. Unadjusted Trial Balance...