After a tax, the price producers receive for the product is equal to: a. Above the original equilibrium price b. None of the above c. The original equilibrium price d. Below the original equilibrium price

Consider a market with demand curve 𝐷 = 25 − 3𝑝 and supply curve 𝑆 = −4 + 4𝑝. The unit of price is dollar. (a) Find the competitive equilibrium. (b) Compute consumer surplus and producer surplus at the equilibrium. (c) The government decides to impose a tax of $2 per unit. Compute the competitive equilibrium with the tax. (d) Compute consumer surplus, producer surplus and tax revenue at the new equilibrium.

Who pays the tax on the market A – consumers and/or firms? Is it a rule in the competitive markets? Derivethe difference between price after and before the introduction of the tax

Suppose the demand curve for a product is vertical and the supply curve is upward sloping. If a unit tax is imposed in the market for this product, _________.

Assume that demand is perfectly elastic and supply is upward sloping. If a specific tax is imposed on sellers then following the imposition of the tax:Group of answer choicesProducer surplus is equal to zero.Consumer surplus is equal to zero.The total price paid by buyers will increase.The price received and kept by sellers remains unchanged.b, c and d are correct.

What is the equilibrium in the market defined as? Question 12Select one:a.The point of intersection between consumption and investment functionsb.The level of income where taxes are minimizedc.The condition when quantity supplied and quantity demanded are equald.The point where supply is maximized