Assume the following linear demand and supply functions of a good respectively, Q=20-P and Q=-2+P, where Q is the quantity and P is the price. Assume that there is a two-dollar unit tax on buyersa. What is the market price and quantity of the good after the consumption tax? Calculate the consumer and producer surplus after the tax. ?b. What is the deadweight loss because of the tax ?

Assume the following linear demand and supply functions of a good respectively, Q=20-P and Q=-2+P, where Q is the quantity and P is the price. Assume that there is a two-dollar unit tax on buyers a....

Assume the following linear demand and supply functions of a good respectively, Q=20-P and Q=-2+P, where Q is the quantity and P is the price. Assume that there is a two-dollar unit tax on buyers

a. What is the market price and quantity of the good after the consumption tax? Calculate the consumer and producer surplus after the tax. ?

b. What is the deadweight loss because of the tax ?

Jun 07, 2022