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80 70 OL 50 ....... ...j.. 40 30 ...j... 20 10 ... ... D 20 40 60 80 100 120 140 160 180 200 X
80 70 OL 50 ....... ...j.." 40 30 ...j... 20 10 ... ... D 20 40 60 80 100 120 140 160 180 200 X (tonnes) 1. X is a miracle good. The demand and supply for X is given above. The market is perfectly competitive. Suppose the government introduces a tax on X of $30 per tonne. a. The equilibrium price consumers pay after tax will be $ per tonne. b. The equilibrium price producers receive after tax will be $ per tonne. C. Tax Revenue is $ _ (show your work) d. Consumer surplus after tax is $ (show your work) e. Producer surplus after tax is $ (show your work)
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