Demand qd 2000 ndash12p supply qs -400 8p with no price, Ask an Expert

Economics

Demand: Qd = 2000 –12P Supply: Qs = -400 + 8P, with no price floor or price ceiling. Now the government imposes an excise tax of $20/unit on the consumers

a. In the demand-supply graph, draw the implied demand after the excise tax

b. What is quantity traded? What price do buyers pay? What price do suppliers receive?

c. Find consumer surplus, producer surplus, deadweight loss, and tax revenue.

d. Identify CS, PS, DWL, and Tax revenue in the graph

e. Compare buyers and producers contribution to tax revenue.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91951269

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