Please solve 4 part I Give upvote and good feedback. Tax Incidence and EfficiencyThe market demand for a product is Q-270-6P, and the market supply is Q,= -130 + 10P, where Q, and Q, are quantitydemanded and supplied, respectively, and P is price.Questions:a. What is equilibrium price and quantity in this market?EquatriumPrice:EquilibriumQuantityb. Enter a formula to calculate price elasticity of demand using the equilibrium price and quantity as the base values.c. Enter a similar formula to calculate price elasticity of supply. d. Suppose the government imposes a $1.25 tax per unit.d1. Use the values for price elasticity of demand and supply to calculate the tax burden on consumers relative to suppliers (or producers).(Note: The sign of your answer should be negative)d2. What is the actual tax burden on suppliers?63. What is the actual tax burden on consumers?64. Calculate the deadweight loss of the tax, using only the price elasticity of demand and supply, the per-unit tax, and equilibrium price and quantity.

The equilibrium price is the price at which the quantity of a good or service supplied by producers…

d. Suppose the government imposes a $1.25 tax per unit d1. Use the values for price elasticity of demand and supply to calo (Note: The sign of your answer should be negative) d2. What is the actual tax burden on suppliers 63. What is the actual tax burden on consumers? 64. Calculate the deadweight loss of the tax, using c rden on consumers relat price elasticity of demand and supply. ppliers for producers) and quantity.

d. Suppose the government imposes a $1.25 tax per unit d1. Use the values for price elasticity of demand and supply to calo (Note: The sign of your answer should be negative) d2. What is the actual tax burden on suppliers 63. What is the actual tax burden on consumers? 64. Calculate the deadweight loss of the tax, using c rden on consumers relat price elasticity of demand and supply. ppliers for producers) and quantity.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please solve 4 part I Give upvote and good feedback.

Tax Incidence and Efficiency
The market demand for a product is Q-270-6P, and the market supply is Q,= -130 + 10P, where Q, and Q, are quantity
demanded and supplied, respectively, and P is price.
Questions:
a. What is equilibrium price and quantity in this market?
Equatrium
Price:
Equilibrium
Quantity
b. Enter a formula to calculate price elasticity of demand using the equilibrium price and quantity as the base values.
c. Enter a similar formula to calculate price elasticity of supply.

d. Suppose the government imposes a $1.25 tax per unit.
d1. Use the values for price elasticity of demand and supply to calculate the tax burden on consumers relative to suppliers (or producers).
(Note: The sign of your answer should be negative)
d2. What is the actual tax burden on suppliers?
63. What is the actual tax burden on consumers?
64. Calculate the deadweight loss of the tax, using only the price elasticity of demand and supply, the per-unit tax, and equilibrium price and quantity.

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