In the market for millet, the demand curveisQ=50-3P and the supply curve is Q=2P. The government decides to raise revenue by taxing consumers ¢5/3 for every tonne of millet purchased. Theprice(P) is measured in Ghana cedi per tonne; and, quantity(Q) is in tonnes. Use this information to answer questions a and b. a). Compute the equilibrium quantity and price of millet in this market. b). Calculate the deadweight loss due to the tax policy.

In the market for millet, the demand curveisQ=50-3P and the supply curve is Q=2P. The government decides to raise revenue by taxing consumers ¢5/3 for every tonne of millet purchased. Theprice(P) is measured in Ghana cedi per tonne; and, quantity(Q) is in tonnes. Use this information to answer questions a and b. a). Compute the equilibrium quantity and price of millet in this market. b). Calculate the deadweight loss due to the tax policy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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