Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine: g) Tax revenue h) Deadweight loss of the tax i) Total surplus after tax
Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine: g) Tax revenue h) Deadweight loss of the tax i) Total surplus after tax
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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Given the following information
QD = 240 - 5P
QS = p
where QD is the quantity demand, QS is the quantity supplied and P is the price.
Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine:
g) Tax revenue
h)
i) Total surplus after tax
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