EssayNICE | 24/7 Homework Help

Essaynice Will Help You Write Your Essays and Term Papers

Answered » You can buy a ready-made answer or pick a professional tutor to order an original one.

The market demand function for corn is Q = 30 – 2P. The market supply function is Q = 5P-2.5, both measured in billions of bushels per year. Suppose the government imposes a $8.10 tax per bushel. What will be the effects on aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax? Instructions: Round your quantities to the nearest whole number. Round prices, surpluses and deadweight losses to 2 decimal places. a. What are the initial equilibrium effects? Complete the table below. After-tax equilibrium price After-tax equilibrium quantity After-tax equilibrium consumer surplus Initial equilibrium price Initial equilibrium quantity Initial equilibrium consumer surplus Initial equilibrium producer surplus Initial equilibrium aggregate surplus b. What are the effects after the government imposes a $8.10 tax per bushel. Complete the table below. After-tax equilibrium producer surplus $ Government revenue After-tax equilibrium aggregate surplus Deadweight loss Before the tax $ 9.64 per bushel billion bushels billion $ $ $ billion billion After the tax per bushel billion bushels billion billion billion billion billion

by | Sep 8, 2023 | economics

The market demand function for corn is
Q = 30 - 2P.
The market supply function is
QS = 5P-2.5,
both measured in billions of bushels per year. Suppose the government imposes a $8.10 tax per bushel. What will be the effects on
aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax?
Instructions: Round your quantities to the nearest whole number. Round prices, surpluses and deadweight losses to 2 decimal places.
a. What are the initial equilibrium effects? Complete the table below.
Initial equilibrium price
Initial equilibrium quantity
Initial equilibrium consumer
surplus
Initial equilibrium producer
surplus
After-tax equilibrium price
After-tax equilibrium quantity
After-tax equilibrium consumer
surplus
After-tax equilibrium producer
surplus
$
Government revenue
After-tax equilibrium aggregate
surplus
Deadweight loss
Before the tax
Initial equilibrium aggregate
surplus
b. What are the effects after the government imposes a $8.10 tax per bushel. Complete the table below.
$
$
$
9.64 per bushel
billion bushels
billion
$
$
$
$
billion
billion
After the tax
per bushel
billion bushels
billion
billion
billion
billion
billion
expand button
Transcribed Image Text:The market demand function for corn is
Q = 30 – 2P.
The market supply function is
QS = 5P-2.5,
both measured in billions of bushels per year. Suppose the government imposes a $8.10 tax per bushel. What will be the effects on
aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax?
Instructions: Round your quantities to the nearest whole number. Round prices, surpluses and deadweight losses to 2 decimal places.
a. What are the initial equilibrium effects? Complete the table below.
Initial equilibrium price
Initial equilibrium quantity
Initial equilibrium consumer
surplus
Initial equilibrium producer
surplus
After-tax equilibrium price
After-tax equilibrium quantity
After-tax equilibrium consumer
surplus
After-tax equilibrium producer
surplus
$
Government revenue
After-tax equilibrium aggregate
surplus
Deadweight loss
Before the tax
Initial equilibrium aggregate
surplus
b. What are the effects after the government imposes a $8.10 tax per bushel. Complete the table below.
$
$
$
9.64 per bushel
billion bushels
billion
$
$
$
$
billion
billion
After the tax
per bushel
billion bushels
billion
billion
billion
billion
billion
  

HOME TO CERTIFIED WRITERS

Why Place An Order With Us?

  • Certified Editors
  • 24/7 Customer Support
  • Profesional Research
  • Easy to Use System Interface
  • Student Friendly Pricing

Have a similar question?

PLAGIRAISM FREE PAPERS

All papers we provide are well-researched, properly formatted and cited.

TOP QUALITY

All papers we provide are well-researched, properly formatted and cited.

HIGHLY SECURED

All papers we provide are well-researched, properly formatted and cited.

Open chat
1
Powered by essaynice
Hello! Welcome to to our whatapp support.
We offer READY solutions, HIGH QUALITY PLAGIARISM FREE essays and term-papers.

We are online and ready to help