Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. The government will impose Php 1.5 as sales taxplease answer all questions. Thank you! How much is the price of the product that is received by the producer, due tothe sale tax? (Use a number, up to 4 decimal values, no commas, no space) *Your answerWhat is the supply function, with sales tax? *P = 36 - 4 QQ = -3 + 0.5 PP = 7.5 + 2 QQ = -3.75 + 0.5PQ = 9 - 0.25 PP = 6 + 2 QWhat is the price elasticity of supply at equilibrium point, without sales tax? (Usea number, up to 4 decimal values, no commas, no space) *Your answerHow much is the total surplus, without sales tax? (Use a number, up to 4 decimalvalues, no commas, no space) * What is the equilibrium point, without sales tax? *O (6,3)O (16 , 5)(3 , 6)O (4.75, 17)(17 ,4.75)O (5,16)How much is the revenue of the government due to sales tax? (Use a number, upto 4 decimal values, no commas, no space) *Your answerWhat is the supply function, without sales tax? *P = 7.5 + 2 QQ = -3 + 0.5 PQ = -3.75 + 0.5PP = 6 + 2 QP = 36 - 4 QQ = 9 - 0.25 P

We are going to find demand and supply function to solve all questions provided.

Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. The government will impose Php 1.5 as sales tax please answer all questions. Thank you

Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. The government will impose Php 1.5 as sales tax please answer all questions. Thank you

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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