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Can you please help me with the following task. Thank you! A. Perfectly elastic demand; sellers pay an excise tax Demand: P = 12 Supply:
Can you please help me with the following task. Thank you!
A. Perfectly elastic demand; sellers pay an excise tax Demand: P = 12 Supply: P = 4 + 1/2Q Tax per unit: I: = $4 Equilibrium, no tax: Q* = _ P* = $_ With tax: QT = _ Price paid by buyers: PD = $_ Price received by sellers: P5 = $ Percentage of tax shifted = 0/0 Tax revenue raised: REV = $ Deadweight loss: DWL = $ Tax efciency ratio: TAXEFF =Step by Step Solution
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