STUDY GUIDE F/MICROECONOMICS
STUDY GUIDE F/MICROECONOMICS
21st Edition
ISBN: 9781307066920
Author: McConnell
Publisher: MCG/CREATE
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Chapter 22, Problem 13DQ
To determine

The distinguishing factor that lies between direct subsidies, countercyclical payments, and marketing loan subsidies under the food conservation and energy act of 2008.

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Suppose demand and supply are given by: (LO3, LO4)Qx d = 14 −  1/2Px and Qx s = 1/4Px  − 1c. How much tax revenue does the government earn with the $12 tax when the new equilibrium quantity is 2 units after tax .
Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. 1. If the government imposed Php 0.75 tax, how much would be the tax burden of the seller?2. At equilibrium point, how much is the consumers surplus? how much is the total surplus 3. What is the elasticity of supply for the product at equilibrium point? how about the elasticity of demand at equilibrium point?
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