Question

question 1. A and B answered already

c. What is the new equilibrium point? Show the government revenue graphically? d. Label the portion of tax that buyer pays and the portion that seller pays? e. What is the price the sellers receive? II. Short Answers (10 Points): 1. (5 Points) Using the equations shown below, answer the following questions with a carefully labelled graph (without calculations). QD a-bP; Qs =c + dP a. Draw demand and supply curves, and show the market equilibrium point. Show the consumer surplus and the producer surplus? b. Assuming a tax of T is imposed on the seller side, what is the new demand and supply curve? Show the new consumer surplus and producer surplus graphically?

Answer 1

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