Question 2 i) Given the following information QD =240-5p QS =p Where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine : i) Total surplus after tax ii) The deadweight loss of the tax iii) The tax revenue
Question 2 i) Given the following information QD =240-5p QS =p Where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine : i) Total surplus after tax ii) The deadweight loss of the tax iii) The tax revenue
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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Question 2
i) Given the following information
QD =240-5p
QS =p
Where QD is the quantity demanded, QS is the quantity supplied and P is the price.
Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine :
i) Total surplus after tax
ii) The
iii) The tax revenue
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