ECON 102 Homework 12 Answer (Penn State University)

ECON 102 Homework 12 Answer (Penn State University) Question 1 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, then after the tax buyers will pay _________ for each unit of the good. Question 2 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, then after the tax the sellers will receive _________ for each unit of the good. Question 3 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, what proportion of the tax will be paid by the buyers? Question 4 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 Question 5 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, consumer surplus is equal to Question 6 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, producer surplus is equal to Question 7 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, government revenue is equal to Question 8 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 consumers is Question 9 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, after the tax, the total amount of tax paid by the producers is Question 10 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 quantity of the good sold is