Suppose the market demand and supply curves are as given below. In each case, quantity refers to millions of litres of gasoline per month price is the price per litre (in cents) Demand: P 350-200° Supply P 140 80 Given these demand and supply equations, the equilibrium price is 200 cents and the equilibrium quantity is 7.5 million litres Suppose the government imposes a tax per litre, and as a result the quantity sold is 5.7 million litres. What is the new "consumer price and what is the new "producer price"? The new price consumers pay is 236 cents. (Enter your response rounded to the nearest cent) The new price producers receive is 1856 cents. (Enter your response rounded to the nearest cent) Find the tax amount by comparing the two prices found above. Tax per litre is cants

Suppose the market demand and supply curves are as given below. In each case, quantity refers to millions of litres of gasoline per month price is the price per litre (in cents) Demand: P 350-200° Supply P 140 80 Given these demand and supply equations, the equilibrium price is 200 cents and the equilibrium quantity is 7.5 million litres Suppose the government imposes a tax per litre, and as a result the quantity sold is 5.7 million litres. What is the new "consumer price and what is the new "producer price"? The new price consumers pay is 236 cents. (Enter your response rounded to the nearest cent) The new price producers receive is 1856 cents. (Enter your response rounded to the nearest cent) Find the tax amount by comparing the two prices found above. Tax per litre is cants

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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