Demand: D(p) = q= 182 – 12p and Supply: S(p) = q= 45 + 14p %3D a.) Assume there are no taxes imposed. Find the equilibrium price and quantity. Equilibrium Price (Round your answer to the nearest cent) 5.27 Equilibrium Quantity (Round your answer to the nearest whole number) 119 b.) Assume there is a 15% tax on the consumer, find the new equilibrium price and quantity. New equilibrium price (Round your answer to the nearest cent) Equilibrium Quantity (Round your answer to the nearest whole number) c.) What portion of the tax is paid by the consumer? (Round to the nearest cent) d.) What portion of the tax is paid by the producer? (Round to the nearest cent) e.) What is the total tax is paid to the government? (Round to the nearest cent)

Demand: D(p) = q= 182 – 12p and Supply: S(p) = q= 45 + 14p %3D a.) Assume there are no taxes imposed. Find the equilibrium price and quantity. Equilibrium Price (Round your answer to the nearest cent) 5.27 Equilibrium Quantity (Round your answer to the nearest whole number) 119 b.) Assume there is a 15% tax on the consumer, find the new equilibrium price and quantity. New equilibrium price (Round your answer to the nearest cent) Equilibrium Quantity (Round your answer to the nearest whole number) c.) What portion of the tax is paid by the consumer? (Round to the nearest cent) d.) What portion of the tax is paid by the producer? (Round to the nearest cent) e.) What is the total tax is paid to the government? (Round to the nearest cent)

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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