2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product. a. By how much will the price of the product rise? b. What are the maximum and minimum possible changes in price? C. What is the producer's share of the tax? d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).
2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product. a. By how much will the price of the product rise? b. What are the maximum and minimum possible changes in price? C. What is the producer's share of the tax? d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section5.A: Appendix: Price Elasticity And Tax Incidence
Problem 2AQ
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![2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply
curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product.
a. By how much will the price of the product rise?
b. What are the maximum and minimum possible changes in price?
C. What is the producer's share of the tax?
d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc765a2bd-7e15-47b2-99fc-070e17306a61%2Fe19877fe-4234-4ded-9059-a0bdcdc36961%2F9mh7hq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2- The demand curve for a good is q = 100 p/c where c is a constant and c ≥ 0. The supply
curve for the good is q=10+p. A quantity tax of t=$10 per unit is imposed on this product.
a. By how much will the price of the product rise?
b. What are the maximum and minimum possible changes in price?
C. What is the producer's share of the tax?
d. Find the elasticity of demand at p=10. (Assuming c≥ 0.1).
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