6). The slope of demand function and supply function is same at 1. This implies that both are unitary elastic and so they share the tax burden equally. For a tax of $1, consumer shares a burden of $0.5 of tax. Hence the answer is $0.50
7) True. This is because tax incidence depends on demand and supply elasticity and this depends on slope of demand and supply curves.
Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given...
Suppose that in a perfectly competitive market, demand and supply are given by e = 100 – bP QS = P – 20 where b=1.5. The government imposes a per-unit tax of $1 on the good. How large is the consumer share of the tax burden? If necessary, round to 2 decimals. Your Answer: Your Answer Question 7 (1 point) In the previous Question 6, you could have found the consumer share of the tax much faster using only the...
Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given by QD = 100 – 6P QS = P - 20 where b=0.5. The government imposes a per-unit tax of $1 on the good. How large is the consumer share of the tax burden? If necessary, round to 2 decimals. Your Answer:
Question 5 (1 point) Suppose that in a perfectly competitive market, demand is given by Q 56.0-P and supply is given by Q=P-13.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding. Your Answer: Your Answer Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given by 100 bP QS P- 20 where b-1.0. The government imposes a...
Question 1 a) b) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = A + Q2 with fixed cost A=$150.0 and MC(Q)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places. Question 6 (1 point) Saved Suppose that in a perfectly competitive market, demand and supply are given by QD = 100 – bP QS = P – 20 where b=1.5. The...
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...
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-69.0-P and supply is given by Q=P-20.0. 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
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=78.0-P and supply is given by Q=P-30.0. 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
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=90.0-P and supply is given by Q=P-20.0. 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 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P and supply is given by Q=P-36.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding. Your Answer: Your Answer View hint for Question 1 Question 2 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=71.0-P and supply is given by Q=P-31.0. The government imposes a per-unit excise tax of $1 on the good. What is...
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=88.0-P and supply is given by Q=P-20.0. 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