Consider a product that is fixed on supply QS=4 and the demand for the product is given by QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer. a) What is the price paid by consumer and producers before the tax and after the tax? b) Find the total tax burden, burden on consumers and burden on producers. c) Suppose that supply schedule is changed to QS= 4+P. Read the above questions and compare the results.

Consider a product that is fixed on supply QS=4 and the demand for the product is given by QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer. a) What is the price paid by consumer and producers before the tax and after the tax? b) Find the total tax burden, burden on consumers and burden on producers. c) Suppose that supply schedule is changed to QS= 4+P. Read the above questions and compare the results.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter6: Demand And Elasticity

Section: Chapter Questions

Problem 3TY

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Consider a product that is fixed on supply QS=4 and the demand for the product is givenby QD= 10-2P. The government imposes a unit tax of 2 TL per kg on the consumer.a) What is the price paid by consumer and producers before the tax and after the tax?b) Find the total tax burden, burden on consumers and burden on producers.c) Suppose that supply schedule is changed to QS= 4+P. Redo the above questions and compare the results thanks in advance
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