QD =8−P4 andQS =−1+P2 a) Suppose the government imposes a $4 tax on consumers, what will...

QD =8−P4 andQS =−1+P2

a) Suppose the government imposes a $4 tax on consumers, what will be the price of consumers, price of producers, quantity bought/sold, CS, PS, TS, GR, and DWL?

b) Suppose the government imposes a $4 tax on producers, what will be the price of consumers, price of producers, quantity bought/sold, CS, PS, TS, GR, and DWL?

c) Suppose the government imposes a $4 subsidy, what will be the price of consumers, price of producers, quantity bought/sold, CS, PS, TS, GR, and DWL?

d) Suppose the government imposes a production quota of 4 units, what will be the price of consumers, price of producers, quantity bought/sold, CS, PS, TS, GR, and DWL?

Qd= 8-P/4, Qs= -1+P/2

Solutions

Expert Solution

Rahul Sunny answered 3 weeks ago

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