Purchase Solution

Tax revenue

Not what you're looking for?

Ask Custom Question

Use the graph below that shows the effect of a $4 per-unit
tax on suppliers to answer the following questions:
a. What are equilibrium price and quantity before the
tax? After the tax?
b. What is producer surplus when the market is in
equilibrium before the tax? After the tax?
c. What is consumer surplus when the market is in
equilibrium before the tax? After the tax?
d. What is total tax revenue collected after the tax is
implemented.

Attachments
Purchase this Solution

Solution Summary

Tax revenue is computed.

Solution Preview

a) Before tax, equilibrium price = $6 and quanitity = 200 units

After tax, equilibrium price = $8 and ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.