Question: can you solve this question?? https://www.pinterest.com Question 1 [24 points] Suppose the weekly demand for a certain good in thousands of units, is given by
can you solve this question??
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https://www.pinterest.com Question 1 [24 points] Suppose the weekly demand for a certain good in thousands of units, is given by the equation P = 40 - Q, and the weekly supply curve of the good by the equation P = 6 + Q where P is the price in dollars. Finally, suppose a per-unit tax of $12, to be collected from sellers is imposed in this market. Complete the following questions. Note: If necessary round your answers to two decimal places. a) Graph the weekly demand, supply (pre-tax), and supply (post-tax) equations. v Supply Curve (without tax) 5 B 10 12 14 16 18 Quantity (thousands oi unltslweek) b) What is the equilibrium price before the tax? Equilibrium Price = $l c) What is the Consumer and Producer Surplus before the tax? Note: Remember that the quantity of units on the graph are in thousands. c) What is the Consumer and Producer Surplus before the tax? Note: Remember that the quantity of units on the graph are in thousands. d) What is the new Consumer and Producer surplus after the tax is imposed? Note: Remember that the quantity of units on the graph are in thousands. 9) How much government revenue will this tax generate a week? Note: Remember that the quantity of units on the graph are in thousands. Government Revenue = $ per week Producer Surplus - Consumer Surplus Producer Surplus Consumer Surplus
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