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The market demand and supply function for VCR movie rentals are:
QD= 10 - 0.04p and QS 3.8P = 4. find out the equilibrium quantity and price and point elasticity of demand in equilibrium. next, find out producer surplus. suppose that VCR movie rentals are taxed at $ 0.25 per unit. find out the revenus generated by the tax. find out the loss in producer surplus. what percentage of the burden of the tax falls on producers?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941836

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