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An economy is inhibited by 10 identical consumers. Total demand for a good in the economy is given by Q=1000-P. Total supply is given by
An economy is inhibited by 10 identical consumers. Total demand for a good in the economy is given by Q=1000-P. Total supply is given by Q=P.
How much does each consumer buy of the good? .................
How large is the total consumer surplus? ................
How large is the total producer surplus? ......................
If a unit tax of 200 is imposed, how large will the tax revenue be? ..........................
How large will the deadweight loss of the tax be? ....................
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