Question: 4 . ( 9 N 1 1 . 1 & 1 1 . 5 ) Suppose that the demand for broccoli is given by: Q

4.(9N11.1&11.5) Suppose that the demand for broccoli is given by: Q P 1,0005 where Q is quantity per year measured in hundreds of bushels and P is the price in dollars per hundred bushels. The long-run supply curve for broccoli is given by: Q P 480 A. Find the equilibrium price and quantity? B. What is consumer surplus at this equilibrium? C. What is producer surplus at this equilibrium? For the rest of the problem, suppose the government institutes a $45 per-hundred-bushel tax on broccoli. D. How would this tax affect equilibrium in the broccoli market? (Hint find new quantity and two prices). E. How would this tax burden be shared between buyers and sellers of broccoli? F. What is the dead weight loss of this tax?

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