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. 1. At equilibrium point, how much is the producers surplus? 2. How much would the producer receive when tax is imposed? 3. If the government imposed Php 0.75 tax, how much would be the tax burden of the buyer?
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. 1. At equilibrium point, how much is the producers surplus? 2. How much would the producer receive when tax is imposed? 3. If the government imposed Php 0.75 tax, how much would be the tax burden of the buyer?
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.10P
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Consider the market for product ABC, when the
1. At equilibrium point, how much is the
2. How much would the producer receive when tax is imposed?
3. If the government imposed Php 0.75 tax, how much would be the tax burden of the buyer?
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