Suppose the market for grass seed (p is the price of grass seed) can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p Find the market equilibrium price and quantity for grass seed. If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction of the tax is paid by consumers? What fraction of the tax is paid by producers?
Suppose the market for grass seed (p is the price of grass seed) can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p Find the market equilibrium price and quantity for grass seed. If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction of the tax is paid by consumers? What fraction of the tax is paid by producers?
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 10PA
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- Suppose the market for grass seed (p is the
price of grass seed) can be expressed as
Demand: QD = 100 - 2p
Supply: QS = 3p
Find the
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