if you were told that the demand and the supply of a good are given by Qd= 25-0.25P and Qs=-10+P, and that the government imposes a $25 per unit tax on buyers. this will result in reduction in the total economic surplus of _____ and a tax incidence such that ____ will be borne by sellers. a) $84.5, 75$ b) $325, 80% c) $33.8, 20%

if you were told that the demand and the supply of a good are given by Qd= 25-0.25P and Qs=-10+P, and that the government imposes a $25 per unit tax on buyers. this will result in reduction in the total economic surplus of _ and a tax incidence such that will be borne by sellers. a) $84.5, 75$ b) $325, 80% c) $33.8, 20%

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 3TY

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