Question

In: Economics

Given the following information QD = 240 - 5P QS = p where QD is the...

Given the following information

QD = 240 - 5P

QS = p

where QD is the quantity demand, QS is the quantity supplied and P is the price.

Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine:

a) Demand and supply equation after tax

b) Buyer's price after tax

c) Seller's price after tax

d) Quantity after tax

e) Consumer surplus after tax

f) Producer surplus after tax

g) Tax revenue

h) Deadweight loss of the tax

i) Total surplus after tax

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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