1. Suppose the market demand for rutabagas is QD = 10 - 0.25P and the QS...

1. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium price of rutabagas?

2. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium quantity of rutabagas?

3. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax equilibrium quantity of rutabagas?

4. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price paid by the consumers of rutabagas

5. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price received by the sellers of rutabagas?

6.

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the relative burden of this rutabaga tax between buyers and sellers?

	A.	consumers pay 62.5% of the tax and sellers pay 37.5%
	B.	consumers pay 50% of the tax and sellers pay 50%
	C.	consumers pay 37.5% of the tax and sellers pay 62.5%
	D.	sellers pay 100% of this tax because the government accessed the tax on sellers.

7.

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the buyers (rather than the sellers) of rutabagas. which of your previous answers would change? Mark any (between 0 and 4) correct answers.

	A.	the equilibrium after tax quantity of rutabagas
	B.	the after tax price paid by the consumers of rutabagas
	C.	the after tax price received by sellers of rutabagas
	D.	the relative burden of the rutabaga tax between buyers and sellers

Expert Solution

Rahul Sunny answered 7 months ago

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