Consider a competitive market with the following supply and demand curve QS = 100/8 P and P = 400 -2.92Q. Assume the government imposes a tax on each unit sold, T = 30. What are the equilibrium quantities before and after the tax? Scegli un'alternativa: a. 133 before the tax and 123 after the tax b. 150 before the tax and 113 after the tax c. 133 before the tax and 150 after the tax d. 100 before the tax and 123 after the tax e. 133 before the tax and 133 after the 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
Chapter17: Taxation And Resource Allocation
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Consider a competitive market with the following supply and demand curve QS = 100/8 P and P = 400 -2.92Q. Assume the government imposes a tax on each unit sold, T = 30.
What are the equilibrium quantities before and after the tax?

Scegli un'alternativa:

a. 133 before the tax and 123 after the tax

b. 150 before the tax and 113 after the tax

c. 133 before the tax and 150 after the tax

d. 100 before the tax and 123 after the tax

e. 133 before the tax and 133 after the tax

 

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