Question: Please solve questions e ) , f ) , g ) and show steps on how to solve. Thanks ( e ) ( 3 marks

Please solve questions e), f), g) and show steps on how to solve. Thanks (e)(3 marks) Suppose the government imposes a tax driving the price of a quick meal up to $12.90 and the tax incidence on consumers is 60%. What is the value of the per unit tax? Whats the government revenue? How large of a deadweight loss would exist?
(f)(2 marks) Instead of a tax, suppose Vancouver city council becomes concerned with how much trash the Mr. Beast fans could generate and limits the total number of quick meals to Q=21,300. What happens to the price in this market (hint: there will not be a shortage in the market)? How large is the deadweight loss here?
(g)(4 marks) Explain if producers prefer the outcome with no government, the imposition of a tax, or the quota using Producer Surplus.
Please solve questions e ) , f ) , g ) and show

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!