The new rule fully in effect-value of consumer surplus

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Assume that the market for beef in a small and isolated community is described by the following two equations: Q = -150 +150*P and Q = 600, where Q represents quantity and P is price. If a $1 per unit sales tax is imposed on businesses then the after-tax producer surplus will be:

A.) 900 B.) 2400 C.) 1200 D.) 0 E.) Infinite

Similarly, assume that the market for beef is described by the following two equations: Q = -150 + 150*P and Q = 1200 – 120*P, where Q represents quantity and P represents price. The government institutes a $3 price ceiling in this market. With the new rule fully in effect, the value of consumer surplus is:

A.) 1500 B.) 600 C.) 300 D.) 375 E.) 1725

Reference no: EM131086082

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The new rule fully in effect-value of consumer surplus : Assume that the market for beef in a small and isolated community is described by the following two equations: Q = -150 +150*P and Q = 600, where Q represents quantity and P is price. Similarly, assume that the market for beef is described by the fol..

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