Question: Please show ALL work and FULLY explain ALL answers. The supply and demand for gasoline is given as follows: Demand: P = 100 -Q Supply:
Please show ALL work and FULLY explain ALL answers.
The supply and demand for gasoline is given as follows: Demand: P = 100 -Q
Supply: P = 0.2+Q
a.) What are the price and quantity of the no policy competitive equilibrium, as a function of?
b.) What are the elasticity of supply (, )and elasticity of demand ()evaluated at the competitive equilibrium?
c.)What are the producer surplus and consumer surplus, under the no policy competitive equilibrium?
d.) Consider a tax of $20/gallon on gasoline.What are the quantity, consumer price, producer price of after tax competitive equilibrium, as a function of?
e.)What are the producer surplus and consumer surplus, under the after tax competitive equilibrium?
f.)What are the change in producer surplus due to the tax ( ) and the change in consumer surplus due to the tax ()?
g.) What is the deadweight loss due to the tax, ?
h.) In Excel, plot - n^s/n^a on the y-axis and on the x-axis.Let be from 0.1 and 5 in Excel
i.)In Excel, plot /+ on the y-axis and on the x-axis. Let be from 0.1 to 5 in Excel
j.)Explain your results from h) and i).
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