The quantity demanded is 12 minus price, and the quantity supplies equals three times the price....

The quantity demanded is 12 minus price, and the quantity supplies equals three times the price. How much consumer surplus and producer surplus is there at equlibrium? What if the government were to impose an excise tax of four follars per unit? What would be the tax revenue and how large would the deadweight loss be?

Expert Solution

Sol:

Price received by producer after tax will be obtained by putting Q = 6 in supply equation

Thus,price received by seller = 2

Rahul Sunny answered 1 year ago

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