Suppose the demand for a product is given by p 40

Economics

Suppose the demand for a product is given by P = 40 - 4Q. Also, the supply is given by P = 10 + Q.
A) What is the equilibrium price and quantity of the product?
B) What is the price elasticity of demand at the equilibrium price?
For the next 3 questions, assume that there is a $10 per unit excise tax levied on the consumers of the product.?
C) What price will buyers pay after the tax is imposed?
D) What is the deadweight loss created by the tax?
E) What is the quantity of the good that will be sold after the tax is imposed?

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9495744

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Questions - 1 explain briefly about management

Questions - 1. Explain briefly about Management Competencies. 2. Explain briefly "Management Challenges in the Global Enterprise". 3. How to develop "High Performance Teams"? 4. Draw a "Motivation Model". What the best w ...

Question - gatekeeper models of mcos require patients to

Question - Gatekeeper models of MCOs require patients to see a primary care doctor before going to see a specialist. What two key economic principles would be involved in a successful gatekeeper program?

Question - quasimodo consumes earplugs and other things his

Question - Quasimodo consumes earplugs and other things. His utility function for earplugs (E) and other consumption (C) is given by U(E, C) = 100E - (E^2)/2 + C Normalize the price of a unit of other consumption, C, to ...

Question prehistory no names or dates here the key

Question: Prehistory. No names or dates here. The key questions are how early human groups supported themselves; what kind of social, economic, and political institutions they developed to manage the resources of their e ...

Question - explain why it is important to evaluate the

Question - Explain why it is important to evaluate the overall performance of the firm's sales force and list the advantages and disadvantages of sales, cost, and profit analyses. Also, discuss the use of ROI in measurin ...

Question - a 1000 utility bond with 14 years remaining

Question - A $1000 utility bond with 14 years remaining before maturity can now be purchased for $760. It pays interest of $20 each 6-month period. What rate of return is earned by purchasing the bond at the current mark ...

Question - consider a community consisting of three voters

Question - Consider a community consisting of three voters, Al, Bob and Cathy. The Marginal Benefit function for each person is, for lighthouse service G is; MBa = 40 - 4G for Al, MBb = 20 - 2G for Bob, and MBc = 10 - G ...

The economics of cities and regions assignment - case study

The Economics of Cities and Regions Assignment - Case Study - Local Government and Economic Planning Local government and economic planning Background: This assignment asks you to link planning, the economy and local gov ...

Question firm 1 must decide whether to enter an industry in

Question: Firm 1 must decide whether to enter an industry in which firm 2 is an incumbent. To enter this industry, firm 1 must choose to build either a plant with a small output capacity (S), or large output capacity (L) ...

Question - binyavanga wainaina and william easterly each

Question - Binyavanga Wainaina and William Easterly each wrote some satirical content regarding how western authors tend to write about Africa. (Easterly writes about the poor more generally, but much of his work is focu ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert