The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on every gallon of antifreeze sold.

In the figure, how would I illustrate the effect that the tax has on the market for antifreeze?

How do I find out and what is the equilibrium price of a gallon of antifreeze before the tax? What is the price paid by buyers after that tax?

What would be the equilibrium quantity of antifreeze be before and after the tax?

What is the revenue collected by the government from this tax?

In this case, would the buyers or sellers bear the largest burden of the tax?

How would I illustrate the deadweight loss created by the tax?

Jason wants to hire Maria to tutor him in economics. Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. Maria has an opportunity cost per hour of $6 for the first, $9 for the second, $12 for the third, $15 for the fourth, and $18 for the fifth. The initial equilibrium price for tutoring is $15 an hour and hence Maria tutors Jason for 4 hours. Now, Maria realizes that she is the only economics tutor because all the other tutors have graduated. Because she is the only tutor, she has a monopoly and, as a monopolist, Maria decides to charge a price of $25 instead of $15 an hour.

At the price of $25 an hour, how many hours will Maria tutor Jason?

At the initial equilibrium price of $15 an hour, what was Jason's total consumer surplus and Maria's total producer surplus?

At the price of $25 an hour, what is Jason's total consumer surplus and what is Maria's total producer surplus?

How does the sum of Jason's consumer surplus plus Maria's producer surplus compare at the initial equilibrium price of $15 an hour (part b) and at the new price of $25 an hour (part c)? Comment on any difference.

1. Suppose the demand is Q = 10 - P and the supply is Q = P + 4. Please verify that the following table gives thequantity demanded and supplied at each given prices. What is the equilibrium price and quantity sold under perfect competition?
Price QuantityQuantity
Supplied Demanded
1 5 9
1.5 5.5 8.5
2 6 8
2.5 6.5 7.5

For any given demand curve for the "right to pollute," the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits.
Suppose there is a sharp improvement in the technology for controlling pollution.
a) Describe theeffect of this development on

Price ; Quantity Demanded
$200 ; 1000
$150 ; 1400
$100 ; 1800
If price falls from $200 to $150, what is the elasticity of demand over this range?
A. -0.625
B. -1.0
C. -1.17
D. -2.5
E. -3.0
As output increases from 1,000 to 1,400 what is marginal revenue?
A. $25
B. $50
C. -$400
D. -$25
E. -$75
If price fal

Suppose you are an aid to a government official deciding on some recently proposed excise tax on the welfare of her constituents. One way of measuring the impact on her constituents is to determine how that tax change affects the level of consumer surplus enjoyed by her citizens in her area. By using a formal analysis and estima

The inverse demand curve for a commodit market is P=180-Q. The inverse supply curve is MC=Q. Based on this information:
a) What is the equilibrium price level if this market is competitve?
b) What is equilibrium quantity level if this market is competitive?
c) What is equilibrium price level if this market is monopolized?

Question 1
Suppose demand and supply are given by Qd = 14 -1/2P and Qs = 1/4P - 1.
a. What are the equilibrium quantity and price in this market? Show your work?
Hint:
1. Draw the demand and supply graph and label all initial points ( D0, S0, P0, E0), following the use of comparative statics given your text on pages 62-65)

1. In an economy, the supply curve of labour, S, is given by: S = -100 + 200W_n
Where W_n is the after-tax wage rate. Assume that the before-tax wage rate is fixed at 10.
a) Write a formula for tax revenues as a function of thetax rate, and sketch the function in a diagram with thetax rate, and sketch the function in a dia

Questions 1 through 6, refer to the following table showing a demand schedule:
Price Quantity Demanded
$200 1000
$150 1400
$100 1800
1. If price falls from $200 to $150, what is the elasticity of demand over this range?
A. -0.625
B. -1.0
C. -1.17
D. -2.5
E. -3.0
2. As output increases