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Question: scenario 2 suppose demand for widgets is given by the...

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SCENARIO 2: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.
SCENARIO 2: Suppose demand for widgets is given by the equation P 20-0.50. Originally, the price of the good is S10 per unit. When a tax of S2 per unit is imposed, the price of the good rises to $12 per unit. 38) Refer to Scenario 2. How much total tax revenue is raised by the tax? A) $2 B) $20 C) S32 D) $40 39) Refer to Scenario 2. What is the total burden of the tax? A) $4 B) S36 C) $64 D) $100 40) Refer to Scenario 2. What is the excess burden of the tax? A) $4 B) S36 C) S64 D) $100 41) Refer to Scenario 2. Prior to the imposition of the tax widgets and after the tax was widgets. imposed they purchased A) 16; 20 B) 20; 16 C) 10; 8 D) 40; 32 42) Refer to Scenario 2. Prior to the imposition of the tax consumer surplus was consumer surplus was A)$100: S64 B) S64; $100 C) $200; $128 m$50 $32 and after the tax was imposed
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