Below is the supply/demand, inverse supply/demand, and market equilibriums for a market. and after a tax imposed on sellers. After the tax, calculate CS, PS, TR, and DWL. Before tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply: P=6Qs+20 Supply: Qs=(1/6)P-(10/3) p*=158; Q*=23 After tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply P=6Qs+30 Supply: Qs=(1/6)(P-10)-(10/3) Pb*=162; Ps*=152; Q*=22
Below is the supply/demand, inverse supply/demand, and market equilibriums for a market. and after a tax imposed on sellers. After the tax, calculate CS, PS, TR, and DWL. Before tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply: P=6Qs+20 Supply: Qs=(1/6)P-(10/3) p*=158; Q*=23 After tax: Inverse demand: P=-4Qd+250 Demand: Qd=(-1/4)P+62.5 Inverse supply P=6Qs+30 Supply: Qs=(1/6)(P-10)-(10/3) Pb*=162; Ps*=152; Q*=22
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 3CQQ
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