Question
Please show ALL work and FULLY explain ALL answers. The supply and demand for gasoline is given as follows: Demand: P = 100 -Q Supply:
Please show ALL work and FULLY explain ALL answers.
The supply and demand for gasoline is given as follows: Demand: P = 100 -Q
Supply: P = 0.2+Q
1.) What are the price and quantity of the no policy competitive equilibrium, as a function of?
2.) What are the elasticity of supply (, )and elasticity of demand ()evaluated at the competitive equilibrium?
3.)What are the producer surplus and consumer surplus, under the no policy competitive equilibrium?
4.) Consider a tax of $20/gallon on gasoline.What are the quantity, consumer price, producer price of after tax competitive equilibrium, as a function of?
5.)What are the producer surplus and consumer surplus, under the after tax competitive equilibrium?
6.)What are the change in producer surplus due to the tax ( ) and the change in consumer surplus due to the tax ()?
7.) What is the deadweight loss due to the tax, ?
8.) In Excel, plot - n^s/n^a on the y-axis and on the x-axis.Let be from 0.1 and 5 in Excel
9.)In Excel, plot /+ on the y-axis and on the x-axis. Let be from 0.1 to 5 in Excel
10.)Explain your results from 8) and 9).
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