Qd=300-2P Qs = 3P-200 a) Calculate the Consumer Surplus and Producer Surplus, Total Surplus, and show...

Qd=300-2P Qs = 3P-200

a) Calculate the Consumer Surplus and Producer Surplus, Total Surplus, and show graphically.

b) After the tax levied on consumers, the demand function is the following: Qd = 300 -2(P-1), calculate the new Consumer Surplus, Producer Surplus, and Total Surplus. Show graphically. c) Discuss your results.

Use supply and demand graphs and draw a graph to show what is happening in the market. Tell us about the elasticity of supply and demand, its impact, and its consequences. In addition, you will need to draw a diagram for all three points, as well as a brief explanation (as discussion) of them.

Expert Solution

Rahul Sunny answered 2 years ago

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