Assume a perfectly competitive industry. The demand curve is Q_D = 93  3P and the supply curve is Q_S = -2 + 2P

 

a) Find producer and consumer surplus.

Suppose that a tax of $20 per unit is imposed on firms.

b) Find the burden of the tax on consumers

c) Find the burden of tax on firms

d) Find any deadweight loss.

Answer rating: 100% (QA)

a To find producer and consumer surplus we first need to find the equilibrium price and quantity whe... View the full answer