The market demand is Qd=12 - 0.04P The market supply is Qs=3.8P + 4 Questions: 1) Calculate the equilibrium qty and price 2) Calculate the elasticity of demand at equilibrium point Supposed each unit is taxed $0.25: 3a) calculate the revenue generated by tax
The market demand is Qd=12 - 0.04P The market supply is Qs=3.8P + 4 Questions: 1) Calculate the equilibrium qty and price 2) Calculate the elasticity of demand at equilibrium point Supposed each unit is taxed $0.25: 3a) calculate the revenue generated by tax
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
Chapter6: Demand And Elasticity
Section: Chapter Questions
Problem 3TY
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The market demand is Qd=12 - 0.04P
The market supply is Qs=3.8P + 4
Questions:
1) Calculate the equilibrium qty and price
2) Calculate the
Supposed each unit is taxed $0.25:
3a) calculate the revenue generated by tax
3b) calculate loss in
3c) calculate loss in
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