The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=320−5P Supply function: QS=−40+5P (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?
The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=320−5P Supply function: QS=−40+5P (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Health Ministry is evaluating the data of the soft beverages market.
Demand function: QD=320−5P
Supply function: QS=−40+5P
(a) Find the Total Surplus.
The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks.
Submit answers in two decimal places if you get answers in decimals/fractions
(b) What is the total of new consumer surplus and producer surplus after government intervention?
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