Question

Suppose that a market has the following demand and supply functions (normal): Qd = 10-P and...

Suppose that a market has the following demand and supply functions (normal): Qd = 10-P and Qs = 2P-2.

If the government imposed a $3/unit excise tax on producers in this market, what would be the value of producer surplus?

If the government imposed a $3/unit excise tax on producers in this market, what would be the value of consumer surplus?

If the government imposed a $3/unit excise tax on producers in this market, what would be the DWL?

If the government imposed a $3/unit excise tax on producers in this market, what would be the new price that producers receive?

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