Question: Help me create a marking scheme / answer this past paper thanks! Suppose that the demand for sweets measured in kilograms is given by Q
Help me create a marking schemeanswer this past paper thanks!
Suppose that the demand for sweets measured in kilograms is given by QDP and the supply of sweets is given by QSP The government legislates a tax on a kilogram of sweets, to be collected from the buyer. What is the price paid by buyers and the price received by sellers after the introduction of the tax?
a Buyers pay and sellers receive
b Buyers pay and sellers receive
c Buyers pay and sellers receive
d Buyers pay and sellers receive
Suppose that the Edgeworth box below represents the amount of shortbreads and brownies available to Bill and Edward. Suppose also that the point A denotes the current allocation of shortbreads and brownies to Bill and to Edward. Which of the following statements best describes the allocations shown in the Edgeworth box?
a Changing the allocation from point A to point B is a Pareto improvement.
b Changing the allocation from point A to point C is a Pareto improvement.
c Changing the allocation from point A to point D is a Pareto improvement.
d Both statement b and statement c are correct.
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