What is the demand elasticity at the equilibrium of 2022? What is the supply elasticity? Which one is more elastic? High gas prices have imposed a great burden on consumers. Suppose that the government now wishes to protect consumers by taxing gasoline supply and considers to impose a $0.5 tax per gallon on gas suppliers. What is the equilibrium price and quantity after tax? Calculate the burden of this proposed tax; what percent of the tax would be “paid" by consumers (Round to nearest percent)? How is this related to your answer in part c)?
What is the demand elasticity at the equilibrium of 2022? What is the supply elasticity? Which one is more elastic? High gas prices have imposed a great burden on consumers. Suppose that the government now wishes to protect consumers by taxing gasoline supply and considers to impose a $0.5 tax per gallon on gas suppliers. What is the equilibrium price and quantity after tax? Calculate the burden of this proposed tax; what percent of the tax would be “paid" by consumers (Round to nearest percent)? How is this related to your answer in part c)?
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 4CQQ
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Question
100%
Assuming a supply function of
Qs = 100+100p
and a
Qd = 700-50p
and an
please answer the following
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