Explain 16 correctly 16 The market demand for good x is y(d)-a-2bp, and the market supply is y(s)-ep, thegovermment imposes a per unit tax t on x, which must be paid by the sellers, calculatethe social loss produced by the tax.OA bet/2(b+c)OB ber/2b+cOC 2ber/2bteOD 2ber/2(bte)17 Consider the pure exchange economy:UA (x'A, x'A) = (x'A(x?A)2, (w'a, w-A) - (1,1)ue (x'B, x'e) = (x's)3(x²a), (w's, w'a) = (2,1)If it is competitive equilibrium, P2 /Pi is-OA 13OB 23OC 43OD 3/4

Demand refers to the quantity of a product that a consumer desires to buy and is willing to pay for…

16 The market demand for good x is y(d)-a-2bp, and the market supply is y(s)-ep, the govermment imposes a per unit tax t on x, which must be paid by the sellers, calculate the social loss produced by the tax. OA ber20te) O ber2b+c OC 2ber/2bte OD 2ber 2(bte)

16 The market demand for good x is y(d)-a-2bp, and the market supply is y(s)-ep, the govermment imposes a per unit tax t on x, which must be paid by the sellers, calculate the social loss produced by the tax. OA ber20te) O ber2b+c OC 2ber/2bte OD 2ber 2(bte)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 6CQQ

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Question

Explain 16 correctly

16 The market demand for good x is y(d)-a-2bp, and the market supply is y(s)-ep, the
govermment imposes a per unit tax t on x, which must be paid by the sellers, calculate
the social loss produced by the tax.
OA bet/2(b+c)
OB ber/2b+c
OC 2ber/2bte
OD 2ber/2(bte)
17 Consider the pure exchange economy:
UA (x'A, x'A) = (x'A(x?A)2, (w'a, w-A) - (1,1)
ue (x'B, x'e) = (x's)3(x²a), (w's, w'a) = (2,1)
If it is competitive equilibrium, P2 /Pi is-
OA 13
OB 23
OC 43
OD 3/4

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