Question: Instructions: Set demand relatively inelastic such that the x intercept of the demand curve is 6 ( this corresponds to a vertical intercept of 1
Instructions: Set demand relatively inelastic such that the intercept of the demand curve is this corresponds to a vertical intercept of supply relatively elastic such that the vertical intercept is $ and impose a $ excise tax on buyers. Use the Surplus Areas switch above the graph as needed.
a With this tax, what is the total amount buyers pay for each unit? $
Report your answer to two decimal places
b With this tax, what is the equilibrium quantity? units
Report your answer as a whole number
c What is the amount of the consumer surplus? $
Round your answer to a whole number
d What is the amount of the producer surplus? $
Round your answer to a whole number
e How much consumer and producer surplus is transferred to the government as tax revenue? $
Round your answer to a whole number
f What is the total amount of economic surplus? $
Round your answer to a whole number
g What is the amount of the deadweight loss? $
Report your answer as a whole number
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