Question

If there's an $11 tax so that the new equilibrium price is $29 and the new equilibrium quantity is 2000, then the government collects__ in tax revenue. The relative burden in this situation will be Hint: the relative burden is Elasticity of Supply //- Elasticity of Demand) and also equals consumer burden/producer burden. Price (dollars) Consumer surplus Supply Demand Producer surplus 0 1,000 2,000 3,300 Quantity of good X (units) Figure 10.PERFECT COMPETITION MAXIMIZES TOTAL SURPLUS, THE SUM OF CONSUMER AND PRODUCER SURPLUS Cart 2000 by $36,300; 1.2 $22,000; 1.2 $36,300; 0.833 $22,000; 0.83

Answer 1

4০ ২৭ aRearen 1४. ২3 M 0 ২০০০ 33०० + sde Tota के, e q১ , Lxw = 2এ-18) x २ o०০ = ।। x २००० = ২२००० Relatt ve burden Covs५we Bu. Producer buaden (ছৈ -২3)x२০০০ হ3-18) x ३ ०৮০ /2 1১ -12 C০১১২c aww

2......more elastic, decrease

explanation- over a period of time consumers may change his consumption pattern and may reduce uses of gasoline, so burden will decrease.

3......true

with requirements of labour demand for it will be elastic whereas supply can't be altered easily.

4......b

the tax will decrease both consumers and producers surpluses. Burden of tax will be shared.

In no case producer surplus will increase.