Question

explain 4. Suppose that the demand curve and supply functions are go = 300-5p and qs = 100+20p. respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus (d) Suppose the government implements a $5 dollar per unit sales tax. 1. Calculate the new quantity and the price paid by the consumer. ii. Calculate the consumer surplus, producer surplus, tax revenue, and deadweight loss. iii. What share of the tax is passed on to the consumer and what share of the tax is passed on to the producer? iv. Graph the taxed equilibrium on a new graph. (e) Recalculate narts thorou

*ONLY NEED HELP WITH PARTS E & F
please show all steps so I can fully understand how to solve. Thank you !

Answer 1

300-Sp s=100 bEquilbrumad-s 300-Sf c) Cnsuumer Surplus20xoo hoducer Sur pus y0xtao - $4600 Equilibriu p4o Qlo0 P Befor ta x E 60 Ater tax Equlonu E € GS 35 P'S TaxS Nes Quanlil Pnice Paid by consumers $40 nCmsumef pays No share Poducer Payc au tax Cansuner Surplus Producer Surplus Tax Revenue beadusesgt le o tax t60-y0)x100 4leo-o 2 35 X (o 3500 S00

-lo0+2p a) C S EV ISS Tax PS 4o0 b) Equlubrum 00+2p ds-ad 300 Equilibrum Pnie-souatty400 e) Consumer Sur plus Producer Surplus - Area above p* below Deman 150x 3 00 CISOX00) 2. 375C0 d)ui New uantiby =4oo New Price Consumes Suplus= Cannot be alculako $/55 Demand curve is Not borunded Producer Surplus x IDx 3)*(150 *Ieo) 37500 Tak Revenu e = $200o loss- Comsumer i) Com ptete tax burden is foaud by LD

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