Question
Consider the following supply and demand functions in a market: p=12-2Q p=2Q Suppose the government imposes a tax rate t*=4 on demand. Compute the DWL
Consider the following supply and demand functions in a market:
p=12-2Q
p=2Q
Suppose the government imposes a tax rate t*=4 on demand.
Compute the DWL (after tax t* is imposed).
(Enter your answer to one integer. For "8", you would write 8). Do not round.
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Microeconomics
Authors: Paul Krugman, Robin Wells
5th edition
1319098780, 1319098789, 978-1319098780
