Question No 01. Suppose Suzuki has the following demand and supply function for Cults VXL: Qd = 55 - SP Q' = -50 + 10P After the government decided to impose tax on the production of Cults VXL, the new supply function: Q' = -60 + 10P Given the information above answer the following questions: i) Find out the equilibrium price and quantity before tax. 11) Find consumer and producer surplus before tax. iii) Determine government revenue and dead weight loss after tax.

Question No 01. Suppose Suzuki has the following demand and supply function for Cults VXL: Qd = 55 - SP Q' = -50 + 10P After the government decided to impose tax on the production of Cults VXL, the new supply function: Q' = -60 + 10P Given the information above answer the following questions: i) Find out the equilibrium price and quantity before tax. 11) Find consumer and producer surplus before tax. iii) Determine government revenue and dead weight loss after tax.

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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