Assume that the market for a good is in equilibrium at a price of $20 and a quantity of 100 units. After the government imposes a $5 per-unit excise tax on the good, the price that buyers pay for the...


Assume that the market for a good is in equilibrium at a price of $20 and a<br>quantity of 100 units. After the government imposes a $5 per-unit excise tax on<br>the good, the price that buyers pay for the good increases by $3. Which of the<br>following are possible values for the government tax revenue and deadweight<br>loss in the market? *<br>O Tax revenue is $200, deadweight loss $0<br>O Tax revenue is $300, deadweight loss $O<br>Tax revenue is $300, deadweight loss $100<br>Tax revenue is $500, deadweight loss $200<br>O Tax revenue is $500, deadweight loss $300<br>Assume that hot dogs and mustard are complementary goods. If the price of hot<br>dogs increase, what will happen to the price and quantity sold of mustard?<br>Price will increase and quantity sold will increase.<br>Price will increase and quantity sold will decrease.<br>Price will decrease and quantity sold will decrease.<br>Price will decrease and quantity sold will increase.<br>O None of the above.<br>

Extracted text: Assume that the market for a good is in equilibrium at a price of $20 and a quantity of 100 units. After the government imposes a $5 per-unit excise tax on the good, the price that buyers pay for the good increases by $3. Which of the following are possible values for the government tax revenue and deadweight loss in the market? * O Tax revenue is $200, deadweight loss $0 O Tax revenue is $300, deadweight loss $O Tax revenue is $300, deadweight loss $100 Tax revenue is $500, deadweight loss $200 O Tax revenue is $500, deadweight loss $300 Assume that hot dogs and mustard are complementary goods. If the price of hot dogs increase, what will happen to the price and quantity sold of mustard? Price will increase and quantity sold will increase. Price will increase and quantity sold will decrease. Price will decrease and quantity sold will decrease. Price will decrease and quantity sold will increase. O None of the above.

Jun 11, 2022
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