Question

Q1) Draw the supply and demand curves associated with the table below. Price-$|Q-Supply|Q-Demand 0.00 50 200 0.50 100 175 1.00 150 150 1.50 200 125 2.00 250 100 a) What is the equilibrium price and quantity? b) What is the equilibrium price and quantity with a $0.75 per unit tax levied on suppliers. Demonstrate answer graphically. c) How would your answer to b change if the tax was levied on consumers and not suppliers? Demonstrate answer graphically. d) What conclusion can you draw about the difference between levying a tax on suppliers and consumers?

          Q1) Draw the supply and demand curves associated with the
table below.
Price-$|Q-Supply|Q-Demand
0.00	50	200
0.50	100	175
1.00	150	150
1.50	200	125
2.00	250	100
a) What is the equilibrium price and quantity?
b) What is the equilibrium price and quantity with a $0.75 per
unit tax levied on suppliers. Demonstrate answer
graphically.
c) How would your answer to b change if the tax was levied
on consumers and not suppliers? Demonstrate answer
graphically.
d) What conclusion can you draw about the difference
between levying a tax on suppliers and consumers?

Q1) Draw the supply and demand curves associated with the
table below.
Price-|Q-Supply|Q-Demand
0.00 50 200
0.50 100 175
1.00 150 150
1.50 200 125
2.00 250 100
a) What is the equilibrium price and quantity?
b) What is the equilibrium price and quantity with a0.75 per
unit tax levied on suppliers. Demonstrate answer
graphically.
c) How would your answer to b change if the tax was levied
on consumers and not suppliers? Demonstrate answer
graphically.
d) What conclusion can you draw about the difference
between levying a tax on suppliers and consumers?

Added by Silvia A.

Question

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