In the market for millet, the demand curve qd-50-3p and the supply curve is q=2p. the government decides to raise revenue by taxing consumers c5/3 for every tonne of millet purchased. the price(p) is measured in ghana cedi per tonne; and, quantity(q) is in tonnes. use this information to answer questions a to c a). how much tax revenue is this policy going to generate for government? b) what proportion of the tax is paid by producers? c). what proportion of the tax is paid by consumers?
In the market for millet, the demand curve qd-50-3p and the supply curve is q=2p. the government decides to raise revenue by taxing consumers c5/3 for every tonne of millet purchased. the price(p) is measured in ghana cedi per tonne; and, quantity(q) is in tonnes. use this information to answer questions a to c a). how much tax revenue is this policy going to generate for government? b) what proportion of the tax is paid by producers? c). what proportion of the tax is paid by consumers?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 4CQQ
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In the market for millet, the demand curve qd-50-3p and the supply curve is q=2p. the government decides to raise revenue by taxing consumers c5/3 for every tonne of millet purchased. the price(p) is measured in ghana cedi per tonne; and, quantity(q) is in tonnes. use this information to answer questions a to c
a). how much tax revenue is this policy going to generate for government?
b) what proportion of the tax is paid by producers?
c). what proportion of the tax is paid by consumers?
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