Question

Suppose a commodity tax is levied on a product. The supply curve
is linear and upward sloping and the demand curve is linear and
downward sloping. The tax lowers the consumer surplus by $300 and
lowers the producer surplus by $200. The deadweight loss is $50.
The government tax revenue is $**[Answer]**. Now,
suppose we learned that the tax rate is $10 per unit. The
equilibrium quantity after the tax must be
**[Answer]**. Consequently, we conclude that the
equilibrium quantity traded before the tax must be
**[Answer]**.

(In decimal numbers, with two decimal places, please.)

Answer #1

In the market for widgets, the supply curve is the typical
upward-sloping straight line, and the demand curve is the typical
downward-sloping straight line. The equilibrium quantity in the
market for widgets is 200 per month when there is no tax. Then a
tax of $5 per widget is imposed. The price paid by buyers increases
by $2 and the after-tax price received by sellers falls by $3. The
government is able to raise $750 per month in revenue from...

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Market demand for calculators is P = 300 – 3Q and market supply
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Suppose that in a hypothetical economic setting, the demand
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