he market demand for rose is QD = 2400–60P and the market supply for rose is QS= –600 +40P. Government imposes a $5 tax per unit of rose sold by the producer. c) Calculate the deadweight loss of a $5 tax per unit levied on producers of roses. d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
he market demand for rose is QD = 2400–60P and the market supply for rose is QS= –600 +40P. Government imposes a $5 tax per unit of rose sold by the producer. c) Calculate the deadweight loss of a $5 tax per unit levied on producers of roses. d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 14QP
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the market demand for rose is QD = 2400–60P and the market supply for rose is QS= –600 +40P. Government imposes a $5 tax per unit of rose sold by the producer.
c) Calculate the
d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
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