Question
3. The consumer surplus at equilibrium is _____________ dollars. 4. The producer surplus at equilibrium is ___________ dollars. 5. For the supply and demand curves
3. The consumer surplus at equilibrium is _____________ dollars.
4.The producer surplus at equilibrium is ___________ dollars.
5. For the supply and demand curves shown, suppose a tax of $15/ lbs is levied on sellers. The new market-clearing price is _______________ dollars per unit?
6. The new equilibrium quantity is _______________ ?
7.The government raises ___________dollars in revenue from this tax?
8.The fraction (or share) of the burden of this tax is borne by buyers is __________? Please report as a decimal number, e.g., .55, and round to the 2nddecimal point.
9. The share of the burden of this tax is borne by the sellers is __________?Please report as a decimal number, e.g., .55, and round to the 2nddecimal point.
Remark 1: To compute 'shares' we want to find what producers' receive after the tax is imposed (that is:[old price - (new price - tax)]/tax).Likewise, the buyer's share is [new price - old price]/tax.
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