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The demand and supply for good x are respectively 05 = 24 2Px + Py/4 and qg = Px 4 with Q5 denoting the quantity
The demand and supply for good x are respectively 05 = 24 2Px + Py/4 and qg = Px 4 with Q5 denoting the quantity demanded for good x, qg the quantity supplied for good x, P3r the price for good x, and P), the price for good y a substitute to good x. Suppose P3, = 8. Suppose the government imposes a unit tax of 6 on producers of good x. 11) Determine the price paid by consumers for good x. 12) Determine the quantity purchased and supplied for good x. 13) Determine the consumers' tax incidence. 14) Determine the price received by producers. 15) Determine the producers' tax incidence. 16) Determine the deadweight loss due to the tax
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