In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is the tax incidence on producers? (If you find that the incidence is $0.50 on producers enter your answer as 0.5).

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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In the market for candy, researchers have estimated the following demand and supply
curves.
Demand: P= 8 - Q/100
Supply: P= (3Q)/700
If the government imposes an excise tax of $0.50 per unit. What is the tax incidence
on producers? (If you find that the incidence is $0.50 on producers enter your answer
as 0.5).
Transcribed Image Text:In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is the tax incidence on producers? (If you find that the incidence is $0.50 on producers enter your answer as 0.5).
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