Using the graph below for cases of microwave popcorn, calculate:
a. equilibrium price.
b. equilibrium quantity.
c. consumer surplus.
d. producer surplus.

Now suppose that the government imposes a flat $2 tax per case on the sellers of microwave popcorn. Show this on the graph and calculate each of the following after the tax is imposed:
e. price paid by buyers
f. price received by sellers
g. consumer surplus
h. producer surplus
i. government revenue
j. deadweight loss

Question

Using the graph below for cases of microwave popcorn, calculate:
a. equilibrium price.
b. equilibrium quantity.
c. consumer surplus.
d. producer surplus.
  
Now suppose that the government imposes a flat $2 tax per case on the sellers of microwave popcorn. Show this on the graph and calculate each of the following after the tax is imposed:
e. price paid by buyers
f. price received by sellers
g. consumer surplus
h. producer surplus
i. government revenue
j. deadweight loss

Quizplus · Accepted Answer

The Answer of Using the graph below for cases of microwave popcorn, calculate:
a. equilibrium price.
b. equilibrium quantity.
c. consumer surplus.
d. producer surplus.
  
Now suppose that the government imposes a flat $2 tax per case on the sellers of microwave popcorn. Show this on the graph and calculate each of the following after the tax is imposed:
e. price paid by buyers
f. price received by sellers
g. consumer surplus
h. producer surplus
i. government revenue
j. deadweight loss

Using the Graph Below for Cases of Microwave Popcorn, Calculate