Demand function: 2QX=2200-PX Supply function : Qx = -300 +3 Px Sales tax per unit : 150 Calculate a. total surplus before and after tax b. Total welfare loss, government revenue and excess burden = DWL c. Draw the graph completely
Demand function: 2QX=2200-PX Supply function : Qx = -300 +3 Px Sales tax per unit : 150 Calculate a. total surplus before and after tax b. Total welfare loss, government revenue and excess burden = DWL c. Draw the graph completely
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 25SQ
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Demand function: 2QX=2200-PX
Supply function : Qx = -300 +3 Px
Sales tax per unit : 150
Calculate
a. total surplus before and after tax
b. Total welfare loss, government revenue and excess burden = DWL
c. Draw the graph completely
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