The demand and supply curves for a product are given in terms of price, P , by 3400 – 30p and 9 = 10p – 600. (a) Find the equilibrium price and quantity. The equilibrium price is 2$ and the equilibrium quantity is units. (b) A specific tax of $16 per unit is imposed on suppliers. Find the new equilibrium price and quantity. The new equilibrium price (including tax) is $ and the new equilibrium quantity is units. (c) How much of the $16 tax is paid by consumers and how much by producers? The tax paid by the consumer is $ and the tax paid by the producer is 2$ of the tax. (d) What is the total tax revenue received by the government? The total tax revenue received by the government is
The demand and supply curves for a product are given in terms of price, P , by 3400 – 30p and 9 = 10p – 600. (a) Find the equilibrium price and quantity. The equilibrium price is 2$ and the equilibrium quantity is units. (b) A specific tax of $16 per unit is imposed on suppliers. Find the new equilibrium price and quantity. The new equilibrium price (including tax) is $ and the new equilibrium quantity is units. (c) How much of the $16 tax is paid by consumers and how much by producers? The tax paid by the consumer is $ and the tax paid by the producer is 2$ of the tax. (d) What is the total tax revenue received by the government? The total tax revenue received by the government is
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 15E
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