The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. P P. P₁ E C ST QT Q₂ a

What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?

Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.

Market researches have studied the market for milk,and their estimates for the supply of and the demand for milk per month are as follows:a.Using the data,graph the demand for and the supply for milk.Identify the equilibrium point as E,and use dotted lines to connect E to the equilibrium price onthe price axis and the equilibrium quantity on the quantity axis.b.Suppose the government enacts amilk price support of $8per gallon.Indicate this action on your graph,and explain the effect on the milk market?Why would the government establish such a price support?c.Now assume the government decides to set a price ceiling of $4 dollar per gallon.Show and explain how this legal price effects your graph of the milk market.What objective could the government be trying to achieve by establishing such a price ceiling?

The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. Which areas represent the revenue collected from this tax?     A + B + F     B + C     F + G     E     A + E

Question 20 Use the following information to answer the following questions. The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, Pc is the price that consumers pay, and Ps is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. s, A Pc B Pe Ps E What is the total amount of producer and consumer surplus (i.e., social welfare) in this market after

The following graph depicts a market where a tax has been imposed. Pe was the equilibrium price before the tax was imposed, and Qe was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers. P Pc Pe Ps A B E C QT F G Qe ST S Q

The demand and supply equations for a product are: Q^d=300-6p and Q^x=-40+6p. . Determine the market Equilibrium and draw graphs. Suppose that the government decides to impose a flat tax of 10% on each unit sold. Show that the price that consumers pay would be the same if the government imposed a tax of Rs. 1.70 per unit sold. Draw graph and explain . Also calculate the total revenue earned by sellers before and after the tax, the tax revenue raised by the government, changes in consumer and producers surplus and dead weight loss

The following graph represents supply and demand in the market for tanning sessions. Suppose that the government imposes a $15 excise tax on providers of tanning sessions. a. Using the graph below, demonstrate the effect of this tax on the market for tanning sessions. Instructions: Use the tool provided, 'New line,' to draw; either a new supply or demand curve that reflects the impact of this tax. Plot only the endpoints of the line. Then use the tool provided, 'New EQ,' to indicate the new equilibrium point. $50 Tools $45 $40 Supply, New EQ New line $35 $30 $25 $20 $15 $10 $5 Demand, 10 20 30 40 50 60 70 80 90 100 Quantity (number of tanning sessions) b. Who pays more of the tax incidence? O Consumers and producers split the tax. O Producers, because the price elasticity of supply exceeds the price elasticity of demand. O Consumers, because the price elasticity of supply exceeds the price elasticity of demand. O Consumers, because the price elasticity of supply is less than the price…

The following graph represents supply and demand in the market for tanning sessions. Suppose that the government imposes a $15 excise tax on providers of tanning sessions. a. Using the graph below, demonstrate the effect of this tax on the market for tanning sessions. Instructions: Use the tool provided, 'New line,' to draw; either a new supply or demand curve that reflects the impact of this tax. Plot only the endpoints of the line. Then use the tool provided, 'New EQ,' to indicate the new equilibrium point. $50 Tools $45 $40 Supplyo New EQ New line $35 $30 $25 $20 $15 $10 $5 Demand, 10 20 30 40 50 60 70 80 90 100 Quantity (number of tanning sessions) b. Who pays more of the tax incidence? O Consumers, because the price elasticity of supply exceeds the price elasticity of demand. O Consumers and producers split the tax. O Consumers, because the price elasticity of supply is less than the price elasticity of demand. O Producers, because the price elasticity of supply exceeds the price…