Question
Questions 16 to 22 The demand and supply for good x are respectively QD = 28 - Px + Py/2 and QS = Px -
Questions 16 to 22 The demand and supply for good x are respectively QD = 28 - Px + Py/2 and QS = Px - 10 with QD denoting the quantity demanded for good x, QS the quantity supplied for good x, Px the price for good x, and Py the price for good y a substitute to good x. Suppose Py = 4. 16) Determine the cross-price elasticity of demand at the equilibrium. Suppose the government imposes a unit tax of 10 on producers. 17) Determine the price paid by consumers. 18) Determine the quantity purchased and supplied. 19) Determine the size of the tax supported by consumers (not the share of the government's tax revenues supported by consumers). 20) Determine the price received by producers. GL/ECON 1000 3.00 - Introduction to Economics: Microeconomics Test #2: Questionnaire Oct. 29, 2020 Prof. Can Erutku 3 21) Determine the size of the tax supported by producers (not the share of the government's tax revenues supported by producers). 22) Determine the deadweight loss due to the tax.
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