Question
given the following information please help me: QD = 20 2P QS = 2P + 4 after a new tax: Q's = 2(P 4) +
given the following information please help me:
QD = 20 2P
QS = 2P + 4
after a new tax:
Q's = 2(P 4) + 4
P1= 4, Q1 = 12, CS1 = 36, PS1 = 40, TS1 = 76
P2 = 6, Q2 = 8, CS1 = 16, PS1 = 16, TS2 = 32
please help me calculate the rest, any help is great!
(k) What is the welfare loss for consumers?
(l) What is the welfare loss for producers?
(m) What is the total welfare loss?
(n) What is the dead-weight loss for consumers?
(o) What is the dead-weight loss for producers?
(p) What is the total dead-weight los?
(q) What is tax revenue collected from consumers?
(r) What is tax revenue collected from producers?
(s) What is total tax revenue collected ?
(t) What is the relative share of consumers in the tax burden?
(u) What is the relative share of producers in the tax burden?
(v) What is the point price elasticity of demand at the initial equilibrium?
(w) What is the point price elasticity of supply at the initial equilibrium?
(x) how can we use the point price elasticities to determine the relative tax burden for consumers and producers?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started