Part 1.
Part 2.
Perfect Competition (Please Graph)
A.
As it can be seen in the figure that demand and supply is equal at price $8 and quantity 40 units.
Hence the equilibrium price in this market before the tax was $8.
B.
The amount of the tax=10-5
=$5
C.
The tax paid by buyers are =10-8
=$2
D
The tax paid by the sellers is=8-5
=$3
Part 1. What was the equilibrium price in this market before the tax? What is the amount of the tax? How much of the t...
How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax is imposed? As a result of the tax, what has happened to the level of output? Calculate the economic welfare after government imposes a tax of $5 per unit on buyers. Total Surplus Government Revenue DWL Producer Surplus Supply Demand 10 20 30 40 50 60 70 80 Quantity
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Question 4-(Chapter 6)- Government Policies: Using the graph shown, answer the following questions: a. What was the equilibrium price in this market before the tax? b. What is the amount of the tax? c. How much of the tax will the buyers pay? d. How much of the tax wil the sellers pay? e. How much will the buyer pay for the product after the tax is imposed? f. How much will the seller receive after the tax is imposed?...
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