Define price elasticity of demand in post-tax equilibrium

Reference no: EM13241949

Suppose Market Demand is given by Q=50-2P, Market Supply is given by Q=P-10. Now the government decides to impose a lump-sum unit tax on the producer. The amount of tax will be 3 dollars per unit. After taxing, the market supply will become Q=P-13. Present a graph and calculate:
(a)Consumer Surplus before tax;

(b)Consumer Surplus after tax;

(c)Producer Surplus before tax;

(e)Producer Surplus after tax;

(d)Total tax the government claims;

(f)Dead Weight Loss;

(g)The tax burden (in dollar) of Consumer;

(h)The percentage of tax paid by consumers;

(i)The tax burden (in dollar) of Producer;

(j)The percentage of tax paid by producers;

(k)Price Elasticity of Demand in the pre-tax equilibrium;

(l)Price Elasticity of Supply in the pre-tax equilibrium; (m)Price Elasticity of Demand in the post-tax equilibrium; (n)Price Elasticity of Supply in the post-tax equilibrium.

Reference no: EM13241949

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