2. Assume that the unit tax is $6.00 and the pre-tax equilibrium quantity and equilibrium price is 600 units and $100.00 respectively. Also, assume that the post-tax equilibrium quantity is 500 units. If E, = E, = 2.5, compute the following: i. The total tax burden? j The total tax revenue received by the government? k. The post-tax equilibrium?

2. Assume that the unit tax is $6.00 and the pre-tax equilibrium quantity and equilibrium price is 600 units and $100.00 respectively. Also, assume that the post-tax equilibrium quantity is 500 units. If E, = E, = 2.5, compute the following: i. The total tax burden? j The total tax revenue received by the government? k. The post-tax equilibrium?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.10P

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