1. In the market for onions, quantity demanded is given by Q = 40 – 2P,...

1. In the market for onions, quantity demanded is given by Q = 40 – 2P, and quantity supplied is given by Q = 2P, where Q represents kg of onions.

Suppose that the government imposes a price floor equal to $12. This will cause producer surplus to------------.

Quiz_Ch5_dul

Consider a market where demand is given by P = 16 – Q, and quantity supplied is given by P = Q/3.

2. If the government imposes a $4 per-unit tax on producers, the final prices paid by consumers and received by producers (after paying the tax) are----------------.

Expert Solution

Rahul Sunny answered 2 years ago

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