Please answer question BHomework Answers
A tax of 3 will reduce the demand and so new demand equation is Q = 72 - 4(P + 3) or Q = 60 - 4P. Supply equation is Q = -6 + 2P. New equilibrium price and quantity are
60 - 4P = -6 + 2P
66 = 6P
P(sellers) = 66/6 = $11
P(buyers) = 11 + 3 = $14
Quantity = -6 + 2*11 = 16 units
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1. Consider a perfectly competitive market where the market demand curve is given by Q 72-4P and ...
Consider a perfectly competitive market where the market demand curve is given by Q = 72−4P...
Consider a perfectly competitive market where the market demand curve is given by Q = 72−4P and the market supply curve is given by Q = −6 + 2P. In each of the following situations (a-e), determine the following items v) The range of possible producer surplus values. vi) The government receipts. vii) The net benefit. viii) The range of deadweight loss. (a) A market with no intervention. (b) A market with tax T = 3. (c) A market with...
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1. Consider a perfectly competitive market where the mar- ket demand curve is given by Q...
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