Repeat Problem 9, but instead suppose the buyer pays the tax, demand is P = 28 - Q, and supply is P = 20.
Answer to relevant QuestionsFor the tax described in Problem 5, a. What fraction of the tax does the seller bear? b. What fraction of the tax does the buyer bear?Same as Problem 1, except now the price for every pound after 10 lb/wk is $4/ lb.For Alexi, coffee and tea are perfect substitutes: One cup of coffee is equivalent to one cup of tea. Suppose Alexi has $90/mo to spend on these beverages, and coffee costs $0.90/cup while tea costs $1.20/cup. Find Alexi’s ...You have the option of renting a car on a daily basis for $40/day or on a weekly basis for $200/wk. draw your budget constraint for a budget of $360/trip.a. Find your best affordable bundle if your travel preferences are ...Same as Problem 1, except now Tom’s utility function is given by U(X, Y) = X1/2Y1/2.
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