1. You are given the following information about the dumpling market: P = -6Qd + 80...

1. You are given the following information about the dumpling market:

P = -6Qd + 80

P = 14Qs + 10

a. Calculate the equilibrium quantity

b. calculate the equilibrium price

c. suppose that the government taxes dumplings by $10/dumpling. Calculate the new taxed equilibrium quantity, Qt.

d. suppose that the government taxes dumplings by $10/dumpling. Calculate the new taxed equilibrium price, Pt.

e. what is the price that producers receive after this tax is implemented?

f. calculate consumer surplus in the presence of this dumpling tax

g. calculate producer surplus in the presence of this dumpling tax

h. calculate deadweight loss in the presence of this dumpling tax

i. calculate the total revenue the government receives as a result of this dumpling tax

j. calculate the tax incidence on consumers

k. calculate the tax incidence on suppliers

Expert Solution

Rahul Sunny answered 2 years ago

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