Using the following information to calculate a)-n). Demand: P = 45- ½ Q Supply: P = 2Q
c) Initial Consumer Surplus=__________
d) Initial Producer Surplus=__________
e) Total Surplus =_________________
Now the government imposes a $15 per unit tax on consumers. Calculate the following.
f) Tax Distorted Competitive Equilibrium Quantity=_____
g) Price (consumers pay with tax)=________
h) Price (producers get with tax)=________
i) Consumer surplus with tax=_________
j) Producer surplus after tax=__________
k) Tax Revenue=_____________
l) Total Surplus after tax=_____________
m) Deadweight Loss=____________
n) What parts above would change if it was a $15 tax on producers?__________________
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