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PLEASE HELP ME EXPLAIN STEP BY STEP WHY THESE QUESTIONS HAVE ANSWERS LIKE THIS Scenario B : Suppose a perfectly competitive market has the following
PLEASE HELP ME EXPLAIN STEP BY STEP WHY THESE QUESTIONS HAVE ANSWERS LIKE THIS
Scenario B:
Suppose a perfectly competitive market has the following demand and supply:
QD = 200 - 10p
QS = 5p - 40
A tax of $6 on each unit sold is imposed on sellers in the market.
- With the tax, what will be the price and quantity in equilibrium?
p = ____18____ Q =____20______
- What is the total amount of tax revenue collected by the government?
GR = ________120______
- Find the Consumer Surplus, Producer Surplus, and Deadweight loss resulting from the tax:
CS = ______20___ PS = ________40___ DWL = _______60____
- Suppose that instead of a tax, a price floor is set at p=18. Find the resulting Consumer Surplus, Producer Surplus, and Deadweight loss from the price control.
CS = ______20____ PS = ___160_______ DWL = _______60_____
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