Question

Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-70.0-P and supply is given by Q-P-18.0. The government imposes a per-unit excise tax of $1 on the good. What is the tax revenue collected by the government? No units, no rounding. Your Answer: Your Answer Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-75.0-P and supply is given by Q-P-26.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer

Answer 1

BEfare (32 tax 70-P & P 18 SS DD -18 40-P- 2P=88 70 418= P 44 44-18 26 After tax 70-1P+ DD: 701 (P+1) 701p-1 = 69-P P-13 69-P G9+ 18 = P P = 43.5 Thus pri ce soeciuoby Seuer Ps 43.5 Pb Pst Prica paid by Pb 43.5+) 44.5 43.5-18 tax = 25.5

Ss 44.5 T 43.5 DD 40 5.5 26 Lalleetedb 4out Tax Rer enua 44.5-43.52 (95.52 1 X 8 5.5 25.5 75-P (42 P26 Befane DD tax P-26 75 t26 P+P 2 P 101 50.5 50 5-26 24.5 Af ten te PD: Q= 7 5-(P+t 5-P-1 4-P TR

DD = S S 74-PM-26 4+26 P+P P 50 Peaice staceived by Selen fs=50 prico paid 50+1 61 Quautity attn tax 50-26 - 24 4 CS 56 26 T 29 24.5 ht 34-512124 2. CS 23X24 23x 12 276