Question: 4 . ( 9 N 1 1 . 1 & 1 1 . 5 ) Suppose that the demand for broccoli is given by: Q
N& Suppose that the demand for broccoli is given by: Q P where Q is quantity per year measured in hundreds of bushels and P is the price in dollars per hundred bushels. The longrun supply curve for broccoli is given by: Q P 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 $ perhundredbushel 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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