Problem 3. Given that the farm gate price of product x is PHP 15.00/kg, Q1 is 350 kg and Q2 is 300 kg; a) what will be the tax revenue if buyer's price (with tax) is 20% higher than the the farm gate price? b) what is the value of the deadweight loss? Price PB Ps 0 B D C Supply Demand Q2 Q₁ Quantity
Problem 3. Given that the farm gate price of product x is PHP 15.00/kg, Q1 is 350 kg and Q2 is 300 kg; a) what will be the tax revenue if buyer's price (with tax) is 20% higher than the the farm gate price? b) what is the value of the deadweight loss? Price PB Ps 0 B D C Supply Demand Q2 Q₁ Quantity
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter16: Externalities, The Environment, And Natural Resources
Section: Chapter Questions
Problem 4DQ
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![Problem 3.
Given that the farm gate price of
product x is PHP 15.00/kg, Q1 is
350 kg and Q2 is 300 kg;
a) what will be the tax revenue if
buyer's price (with tax) is 20%
higher than the the farm gate
price?
b) what is the value of the
deadweight loss?
Price
PB
Ps
0
***********
B
В
D
Supply
Demand
Q2 Q₁ Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F177c6ed3-2072-4dce-8249-935428f785c0%2Fdb27d0e4-6e66-4a81-8fcd-60d2d6b51766%2F98vdco1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3.
Given that the farm gate price of
product x is PHP 15.00/kg, Q1 is
350 kg and Q2 is 300 kg;
a) what will be the tax revenue if
buyer's price (with tax) is 20%
higher than the the farm gate
price?
b) what is the value of the
deadweight loss?
Price
PB
Ps
0
***********
B
В
D
Supply
Demand
Q2 Q₁ Quantity
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