1. Business
  2. Economics
  3. of good x to buy would be a 5 b...

Question: of good x to buy would be a 5 b...

Question details

of good x to buy would be a) 5 b) 0 c) 20 d) 40 e) 10 Suppose that the government imposes a S9 per unit tax on good X. Suppose also that price elasticity of demand εQAP--0.5 and price elasticity which of the following statements about the incidence of this per unit tax is correct? a) Tax burden on consumer- $6, while the tax burden on the producer $3 o) Tax burden on consumer $3, while the tax burden on the producer- $6 c) Tax burden on consumer= $4.5 , while the tax burden on the producer-S4.5 d) Tax burden on consumer-S0 , while the tax burden on the producer-$9 e) Tax burden on consumer-S9 , while the tax burden on the producer-SO 1 of supply εο.sp-®. Based on this informauon, 3. Suppose in a competitive market, the equilibrium price S 2.5 and the equilibrium quantity 2.5 units and the price elasticity of supply εQsP = 2 . Based on this information which of the following equations is the supply function? a) Q-2.5+ P b) Q-2+2.5 P c) Q--2.5 + 2P d) Q- 15+2.5P e) None of the above 4. Which of the following utility functions has a diminishing MRSxy?
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution