Welfare effects of a per unit taxgiven the qd 1000

Economics

Welfare Effects of a Per Unit Tax

Given the Qd = 1000 - p and Qs = 3p-120, suppose the government imposes a per unit tax of $64:

Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**).

Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.

Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus (i.e. the deadweight loss) from the market without the tax.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91410158

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