# Question: Suppose demand and supply are given by a

Suppose demand and supply are given by

a. Determine the equilibrium price and quantity. Show the equilibrium graphically.

b. Suppose a $ 12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.

c. How much tax revenue does the government earn with the $ 12tax?

a. Determine the equilibrium price and quantity. Show the equilibrium graphically.

b. Suppose a $ 12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.

c. How much tax revenue does the government earn with the $ 12tax?

## Answer to relevant Questions

The supply curve for product X is given by Qsx = - 520 + 20Px. a. Find the inverse supply curve. b. How much surplus do producers receive when Qx = 400? When Qx = 1,200?From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on non-customers who make $ 12 million in withdrawals from other banks’ATM ...Suppose the true inverse demand relation for good X is Qdx = a + bPx + cM + e, and you estimated the parameters to be â = 22, b^ = -1.8, δâ = 2.5, and δb^ = 0.7. Find the approximate 95 percent confidence interval for ...A consumer’s budget set for two goods (X and Y) is ≥ 600 3X + 6Y. a. Illustrate the budget set in a diagram. b. Does the budget set change if the prices of both goods double and the consumer’s income also doubles? ...An economist estimated that the cost function of a single- product firm isC (Q) = 100 + 20Q + 15Q2+10Q3Based on this information, determine: a. The fixed cost of producing 10 units of output. b. The variable cost of ...Post your question