Demand: D(p) = 2110- 7pSupply: S(p) = 23p - 500a) First, assume that no caxes are imposed. Find the equilibrium price and quantity.Price= $Quantity =9.b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity.Price = $Quantity =8.c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer?Consumer pays $escProducer pays $9.d) How much tax revenue is generated for the government?Tax revenue = $!7:94FI29,262F2#320 F3DOD$4F4%5FSMacBook Pro***A6e tv AF6◄◄&7F7► 11*OFBF9Instructions ^F10FIO

To calculate the equilibrium in the market we equate either the quantity or the price in both…

Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ 8. Quantity = b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Producer pays $ 9- Quantity = c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ 9-

Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ 8. Quantity = b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Producer pays $ 9- Quantity = c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ 9-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Demand: D(p) = 2110- 7p
Supply: S(p) = 23p - 500
a) First, assume that no caxes are imposed. Find the equilibrium price and quantity.
Price= $
Quantity =
9.
b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity.
Price = $
Quantity =
8.
c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer?
Consumer pays $
esc
Producer pays $
9.
d) How much tax revenue is generated for the government?
Tax revenue = $
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