QUESTION 5 Suppose demand curve is given by P=1000-5Q and the supply curve is given by P = 5Q. If the government imposes a price ceiling of 279, calculate the resulting deadweight loss. Give your answer to 2 decimal places. QUESTION 6 Suppose the demand curve in a market is given by P 1000-5Q. Recall that the demand curve represents consumers' willingness to pay-for each quantity, the price on the demand curve is the maximum price at which the market will demand (at least) that quantity. If the government imposes a 20 dollar tax per unit on consumers, how much are consumers willing to pay to purchase 77 units?
QUESTION 5 Suppose demand curve is given by P=1000-5Q and the supply curve is given by P = 5Q. If the government imposes a price ceiling of 279, calculate the resulting deadweight loss. Give your answer to 2 decimal places. QUESTION 6 Suppose the demand curve in a market is given by P 1000-5Q. Recall that the demand curve represents consumers' willingness to pay-for each quantity, the price on the demand curve is the maximum price at which the market will demand (at least) that quantity. If the government imposes a 20 dollar tax per unit on consumers, how much are consumers willing to pay to purchase 77 units?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...
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