1. Given below are data for demand and supply curves for footballs.
Price ($): 16 20 24 28 32
Quantity demanded: 90 80 70 60 50
Quantity supplied: 30 50 70 90 110
(a) In this market, the equilibrium price is $24 and equilibrium quantity is $70. (2 points)
(b) Using mid-point elasticity formula, the price elasticity of supply between the price of $24 and $28 is 1.65. (2 points)
(c) Suppose the government imposes a tax on consumers in this market. As a result consumers buy 30 units less at each price. The new equilibrium quantity in this market is 50. (2 points)
(d) After the tax, consumers pay a price of $32 while the sellers receive $20. The government receives a tax of $12 per unit. (2 points)
how we calculate (c) and (d) ??
thank you very much guys
2006-10-26
07:26:07
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2 answers
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asked by
huligancho
1
in
Business & Finance
➔ Taxes
➔ United States
I just need to know how we do it - there is nothing in the book
2006-10-26
07:44:07 ·
update #1