In the market for apples, the demand curve is Q = 503P and the supply curve...

  

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In the market for apples, the demand curve is Q = 503P and the supply curve is Q =2P. The Government decides to raise revenue by taxing consumers 2 for every apple purchased. i) Graph the supply and demand curves, and indicate how the curves shift after implementation of the tax. ii) Calculate the pre-tax and after-tax equilibrium quantities and prices. iii) Calculate the change in consumer and producer surplus from the tax. iv) Calculate the burden of the tax borne by consumer and producer In the market for apples, the demand curve is Q = 503P and the supply curve is Q =2P. The Government decides to raise revenue by taxing consumers 2 for every apple purchased. i) Graph the supply and demand curves, and indicate how the curves shift after implementation of the tax. ii) Calculate the pre-tax and after-tax equilibrium quantities and prices. iii) Calculate the change in consumer and producer surplus from the tax. iv) Calculate the burden of the tax borne by consumer and producer

Answer rating: 100% (QA)

Apple Market with Consumer Tax i Graphing Supply and Demand with Tax PreTax Equilibrium Plot the demand curve Q 50 3P on the yaxis and quantity Q on the xaxisThe demand curve will slope downward as pr... View the full answer