Question
How much would the government have to spend on this price support? ?Suppose the government allocated the good they purchase to the customers who are
How much would the government have to spend on this price support? ?Suppose the government allocated the good they purchase to the customers who are willing to pay the most for them, what would be the excess burden of the price support? Suppose the government imposed a tax on buyers of five dollars per unit sold how much would the government collect in tax revenue? Suppose the government imposed a tax and sellers of five dollars per unit ?sold how much would the government collect in tax revenue?How much deadweight loss would be created by the tax on sellers? Suppose the government paid buyers five dollars for each unit they purchased what quantity would be bought and sold in the market??How much excess burden will be created by this subsidy? ?
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