Below is the supply/demand, inverse supply/demand, and market equilibriums for a market. and after a tax imposed on sellers. After the tax, calculate CS, PS, TR, and DWL. Before tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply: P=6Qs+20 Supply: Qs=(1/6)P-(10/3) p*=158; Q*=23 After tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply P=6Qs+30 Supply: Qs=(1/6)(P-10)-(10/3) Pb*=162; Ps*=152; Q*=22

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Supply: Applications And Extensions
Section: Chapter Questions
Problem 14CQ
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Below is the supply/demand, inverse supply/demand, and market equilibriums for a market before
and after a tax imposed on sellers. After the tax, calculate CS, PS, TR, and DWL.
Before tax:
Inverse demand: P=-4Qd+250
Demand: Qd=(-1/4)P+62.5
Inverse supply: P=6Qs+20
Supply: Qs=(1/6)P-(10/3)
p*=158; Q*=23
After tax:
Inverse demand: P=-4Qd+25o
Demand: Qd=(-1/4)P+62.5
Inverse supply
P=6Qs+30
Supply: Qs=(1/6)(P-10)-(10/3)
Pb*=162; Ps*=152; Q*=22
Transcribed Image Text:Below is the supply/demand, inverse supply/demand, and market equilibriums for a market before and after a tax imposed on sellers. After the tax, calculate CS, PS, TR, and DWL. Before tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply: P=6Qs+20 Supply: Qs=(1/6)P-(10/3) p*=158; Q*=23 After tax: Inverse demand: P=-4Qd+25o Demand: Qd=(-1/4)P+62.5 Inverse supply P=6Qs+30 Supply: Qs=(1/6)(P-10)-(10/3) Pb*=162; Ps*=152; Q*=22
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