Suppose that the supply and demand for widgets is given by the following equations:QD = 36 – 3P= -12 + 5PWhat is the price elasticity of supplyO a. -1b. 5C. 1/3d. 5/3QUESTION 2Suppose that the supply and demand for widgets is given by the following equations:QD = 36 – 3PQs = -12 + 5PIf a tax were imposed on widgets, which of the following would be correct.a. The tax would be split between consumers and producers, but consumers would pay the majority of the taxb. The entire tax would be paid by producersc. The tax would be split between consumers and producers, but producers would pay the majority of the taxd. The entire tax would be paid by consumers

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Answered: Suppose that the supply and demand for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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