Determine what is the share of the tax paid by the seller

Reference no: EM13221694

Qs= 3p Qd= 100-2p

a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax? What will be the price received by the seller? What quantity is sold? Show your calculation.

b) What is the share of the tax paid by the seller? What is the share of the buyer? Are they the same? If so, why? If not, why not? Explain your answer.

c) What is the deadweight loss caused by this taxation?

Reference no: EM13221694

Questions Cloud

Determine the heat of solution : Calculate the heat of solution, DeltaH_soln, of KCl. Assume that the specific heat of the solution is identical to that of water, 4.18 J/(g/C).kj/mol

Define what pressure is density equal to density of diamond : The isothermal compressibility of graphite is 1.56 × 10-7 bar-1. At what pressure is density equal to density of diamond?

What is change in producer surplus if an increase in demand : Suppose that P = $150 and Q = 1500 in an industry that has Demand and Supply functions of P = 210 - 0.04Q and P = 60 + 0.06Q. What is the change in producer surplus if an increase in Demand increases equilibrium P to $180 and equilibrium Q to 2000

Define the wastewater solution from a factory : The wastewater solution from a factory containing high levels of salts needs to be diluted before it can be released into the environment. Therefore, two containers of waste solution are separated by a semipermeable membrane and pressure is applie..

Determine what is the share of the tax paid by the seller : Qs= 3p Qd= 100-2p a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax What will be the price received by the seller What quantity is sold Show your calculation.

What economic forces affect the industry : What economic forces affect the industry?

What are the critical success factors : Who has succeeded and failed in the industry and why? What are the critical success factors?

State hammered into a thin sheet to be used as aluminum foil : hammered into a thin sheet to be used as aluminum foil. If the thickness of the aluminum foil is uniformly 13 um, what area of aluminum foil (in cm^2) can be made? The density of aluminum metal is 2.969 g/cm^3.

At which point flat-of-the-curve medicine is experienced : Indicate at which point flat-of-the-curve medicine is experienced in the following example (imagine that antibiotics have been prescribed for a given population of 1,000 elderly persons). Number of prescriptions hospitalizations for community-acqu..

User Account

All Pages