Question
) In the market for bananas, there are three demanders and three suppliers. Here are their marginal value and marginal cost curves: BertErnieBig BirdQMVQMVQMV1$121$151$102$102$122$93$73$103$84$24$94$7LarryMoeShempQMCQMCQMC1$11$31$52$22$52$93$93$83$104$124$154$11 Suppose
) In the market for bananas, there are three demanders and three suppliers. Here are their marginal value and marginal cost curves:
BertErnieBig BirdQMVQMVQMV1$121$151$102$102$122$93$73$103$84$24$94$7LarryMoeShempQMCQMCQMC1$11$31$52$22$52$93$93$83$104$124$154$11
Suppose the government imposes a sales tax of 9 dollars per banana.
What is the old equilibrium price?
What is the new equilibrium price?
How much consumer surplus is lost due to the tax?
How much producer surplus is lost due to the tax?
What is the deadweight loss due to the tax?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
