Based on the attached equation.Determine (a) tax revenue(b) deadweight loss of tax 4. Given the following informationQp = 240 – 5POs = PWhere Qp is the quantity demanded , Qs is the quantity suppliedand P is the price.The govern-ment enacted a tax of 0.12(12percent) per-unit on sellers in this mar-ket.

With the imposition of tax there is market failure as tax leads to dead weight loss

4. Given the following information Qp = 240 – 5P es = P Where Qp is the quantity demanded , s is the quantity supplied and P is the price. The govern-ment enacted a tax of 0.12(12percent) per-unit on sellers in this mar-ket.

4. Given the following information Qp = 240 – 5P es = P Where Qp is the quantity demanded , s is the quantity supplied and P is the price. The govern-ment enacted a tax of 0.12(12percent) per-unit on sellers in this mar-ket.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Based on the attached equation.
Determine
(a) tax revenue
(b) deadweight loss of tax

4. Given the following information
Qp = 240 – 5P
Os = P
Where Qp is the quantity demanded , Qs is the quantity supplied
and P is the price.
The govern-ment enacted a tax of 0.12(12percent) per-unit on sellers in this mar-ket.

Definition Definition Cost to society created by market inefficiency when supply and demand are not in market equilibrium.

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