Correct answers are 1)3.4 2)3.5 3)26 4)5.28 i dont know how though
By substituting values of P in Qd, Qs and Qs+tax we get the results as below
P |
Qd |
Qs |
Qs+tax = -18+8*(P-0.25) |
0 |
50 |
-18 |
-20 |
1 |
38 |
-10 |
-12 |
2 |
26 |
-2 |
-4 |
3.4 |
9.2 |
9.2 |
7.2 |
3.5 |
8 |
10 |
8 |
5 |
-10 |
22 |
20 |
1. From the above table, the market price without a per unit-tax is 3.4, or by solving equation
Qd=Qs
50-12P=-18+8P
68=20P
P=3.4
Q= 50-12*3.4 = 9.2
2. With tax,
Qd=Qs
50-12P=-18+8(P-0.25)
50-12P = -18+8P-2
70=20P
P= 3.5
Q = 50-12*3.5=8
3. Sellers Price = Total price-tax = 3.5-0.25=3.25
Sellers revenue = 3.25*8 = 26
4. Without tax, sellers revenue = 3.4*9.2 = 31.28
Sellers revenue with tax = 3.25*8=26
So, lost in revenue = 31.28-26=5.28
Question 1 1/4 pts Supposethat in the market for anas,wihout a per-unt t in pc demand is given by...