65 629
Assignments Done
99,2%
Successfully Done
In October 2018

Answer to Question #39250 in Macroeconomics for ash

Question #39250
Use the following supply and demand functions to answer the questions below:
Qd = 20‐2P, Qs = 5+3P

A. Determine the equilibrium price and quantity and illustrate with a graph.

B. The government imposes a tax of $5.00. Find the new equilibrium price and quantity. Illustrate, using the same graph for part a.

C. Determine the total tax revenue earned by the government, the amount of the tax paid by consumers and the amount of the tax paid by sellers.

D. What determines whether consumers or sellers pay the greater proportion of a tax—such as the tax on cigarettes—in part a? Explain your answer.
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions