In the market for air filters demand is represented by the

Assignment Help Taxation

Reference no: EM13373487

In the market for air filters, demand is represented by the function P==110-4Qd and supply is represented by the function P=10+Qs.a)find the equilibrium price and quantity and calculate the consumer surplus and the producer surplusb) the government imposes a tax of $20per unit of air filter sold in the market (you choose whether the tax is imposed on consumers ofr producers)obtain the new equilibrium quantity, the price paid by the consumer and the price received by the producer after the tax has been imposed.c) Compute the total tax revenues collected by the government and the inefficiencies (deadweight loss) created by the tax.d) Hous much of the tax is paid by consumers and how much is paid by producers? Compute the price elasticity of demand and supply at the original (pre-tax) equilibrium in the market and use your results to explain the economic incidence of the tax.

Reference no: EM13373487

Questions Cloud

Steps to improve concise writing during the revision : steps to improve concise writing during the revision process include .adding phrases such as more or less and for all

You are the manager of the surgery department at a hospital : you are the manager of the surgery department at a hospital which serves mostly medicare patients. the hospital

1suppose that an individual has a utility function uc h : 1. suppose that an individual has a utility function uc h lnc hcrepresents consumption of a necessity good such as

The owner of a restaurant is considering lowering menu : the owner of a restaurant is considering lowering menu prices to draw in more customers. he is debating between

In the market for air filters demand is represented by the : in the market for air filters demand is represented by the function p110-4qd and supply is represented by the function

1sources such as experiments surveys notes from your own : 1.sources such as experiments surveys notes from your own field research eyewitness accounts and historical documents

1 two individuals fred and helen in an economy with no : 1. two individuals fred and helen in an economy with no production each have the utility function u 10xy. prices of

How can you determine meter in : how can you determine meter in a

Ques 1the government is planning to build a bridge which : ques 1the government is planning to build a bridge which connnects the north and south of the country. the cost of

User Account

All Pages