Q.2 Consider the following demand and supply model Q' =w. -v,(P+1)+v,m Q' --d, +8,(P+s) Where m is income/wealth, t is the tax rate and s is rate of subsidy which are exogenous. a. Find equilibrium price and quantity b. Find government total tax collection T c. Assuming o -0' -O write the above model in matrix form

Q.2 Consider the following demand and supply model Q' =w. -v,(P+1)+v,m Q' --d, +8,(P+s) Where m is income/wealth, t is the tax rate and s is rate of subsidy which are exogenous. a. Find equilibrium price and quantity b. Find government total tax collection T c. Assuming o -0' -O write the above model in matrix form

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

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 4TY

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