Question

Given the following information:

Demand: Qd = 200 – 5P

Supply: Qs = 5P

If a quantity tax of $2 per unit sold is imposed,

Calculate:

(ii) Seller's price after tax

Question 6e

Given the following information:

Demand: Qd = 200 – 5P

Supply: Qs = 5P

If a quantity tax of $2 per unit sold is imposed,

Calculate:

(e) Quantity after tax

Question 6f

Given the following information:

Demand: Qd = 200 – 5P

Supply: Qs = 5P

If a quantity tax of $2 per unit sold is imposed,

Calculate:

(f) Tax revenue

Question 6g

Given the following information:

Demand: Qd = 200 – 5P

Supply: Qs = 5P

If a quantity tax of $2 per unit sold is imposed,

Calculate:

(g) Deadweight loss of the tax

Question 6h

Given the following information:

Demand: Qd = 200 – 5P

Supply: Qs = 5P

If a quantity tax of $2 per unit sold is imposed,

(h) What determines whether the buyer of the seller bears the burden of the tax?

Select one:

a. the elasticity of the demand curve

b. the elasticity of the supply curve

c. the elasticity of the supply and demand curve

d. the value of the tax

e. the price of the good

Answer 1