Question
Assume a perfectly competitive industry. The demand curve isQD=391Pand the supply curve isQS=16+4P Find producer and consumer surplus. PS=$ CS=$ Suppose that a tax of
Assume a perfectly competitive industry. The demand curve isQD=391Pand the supply curve isQS=16+4P
Find producer and consumer surplus.
PS=$
CS=$
Suppose that a tax of $15 per unit is imposed on firms. Find the burden of the tax on consumers and firms, as well as any deadweight loss.
Producer'sTaxBurden=$
Consumer'sTaxBurden=$
DWL=$
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
