he market demand for rose is QD = 2400–60P and the market supply for rose is QS= –600 +40P. Government imposes a $5 tax per unit of rose sold by the producer. c) Calculate the deadweight loss of a $5 tax per unit levied on producers of roses. d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
he market demand for rose is QD = 2400–60P and the market supply for rose is QS= –600 +40P. Government imposes a $5 tax per unit of rose sold by the producer. c) Calculate the deadweight loss of a $5 tax per unit levied on producers of roses. d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Costs Of Taxation
Section8.1: The Deadweight Loss Of Taxation
Problem 1QQ
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c) Calculate the
d) How does your answers to parts (a) and (c) change if the tax was levied on consumers of rose?
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