Suppose the market demand and sup Demand P400-240 Supply: P- 160 - B0 Given these demand and supply equations, the equilbrium price is 220 cents and the equilibrium quandity is 7.5 milion litres Suppose the govemment imposes a tax per itre, and asa resutthe quantity sold is 5.8 milion litres. What is the new "consumer price" and what is the new "producer price? The new price consumens pay is 260.8 cents (Enter your response rounded to the nearest cent) The new price producers receive is cents. (Enter your response rounded to the nearest cent)
Suppose the market demand and sup Demand P400-240 Supply: P- 160 - B0 Given these demand and supply equations, the equilbrium price is 220 cents and the equilibrium quandity is 7.5 milion litres Suppose the govemment imposes a tax per itre, and asa resutthe quantity sold is 5.8 milion litres. What is the new "consumer price" and what is the new "producer price? The new price consumens pay is 260.8 cents (Enter your response rounded to the nearest cent) The new price producers receive is cents. (Enter your response rounded to the nearest cent)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose the market demand and supply curves are as given below. In each case, quantity refers to milions of litres of gasoline per month; price is the price per litre (in cents).
Pa400 - 240
Supply: P= 160 + 80
Given these demand and supply equations, the equilbrkum price is 220 cents and the equilibrium quantity is 7.5 milion litres.
Suppose the government imposes a tax per itre, and as a result the quantity sold is 5.8 million litres. What is the new "consumer price" and what is the new "producer price"?
The new price consumers pay is 260.8 cents. (Enter your response rounded to the nearest cent.)
The new price producers receive is cents. (Enter your response rounded to the nearest cent.)
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