Draw the supply and demand curves associated with the tables below. Price __________Qs _______________QD $0.00...............50........................200 .50.................100........................175 1.00...............150........................150
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Price __________Qs _______________QD
$0.00...............50........................200
.50.................100........................175
1.00...............150........................150
1.50...............200........................125
2.00...............250........................100
a. What is equilibrium price and quantity?
b. What is equilibrium price and quantity with a $.75 per unit tax levied on suppliers? Demonstrate your answer graphically.
c. How does your answer change to b if the tax were levied on consumers not producers? Demonstrate your answer graphically.
d. What conclusion can you draw about the difference between levying a tax on suppliers and consumers?
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