Suppose a tax of $3 is imposed on each new garden hose that is sold, resulting in a deadweight loss of $22,500. the supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. before the tax was imposed, the equilibrium quantity of garden hoses was 100,000. we can conclude that the equilibrium quantity of garden hoses after the tax is imposed is

Equilibrium quantity of garden hoses after the tax is imposed is 85000.

Explanation:

Given that,

Dead weight Loss = $22500

Tax amount per unit (t) = $3

Equilibrium quantity before tax, = 1,00,000 units

Equilibrium quantity after tax, = ?

Dead weight Loss =

22500 = 0.5 × 3 × (100000 - )

= 85000 units

∴ Equilibrium quantity of garden hoses after the tax is imposed is 85000.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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