Consider the following supply and demand schedule:
(A)Draw the market supply and demand curves.Show the equilibrium quantity,price,producer surplus,and consumer surplus. (
B)Describe what would happen to the price of this product if a tax of $4.50 per unit sold is enacted by the government.Show your answer graphically. (
C)Show the deadweight loss due to the tax on your diagram.

Question

Consider the following supply and demand schedule:  
(A)Draw the market supply and demand curves.Show the equilibrium quantity,price,producer surplus,and consumer surplus. (
B)Describe what would happen to the price of this product if a tax of $4.50 per unit sold is enacted by the government.Show your answer graphically. (
C)Show the deadweight loss due to the tax on your diagram.

Quizplus · Accepted Answer

The Answer of Consider the following supply and demand schedule:  
(A)Draw the market supply and demand curves.Show the equilibrium quantity,price,producer surplus,and consumer surplus. (
B)Describe what would happen to the price of this product if a tax of $4.50 per unit sold is enacted by the government.Show your answer graphically. (
C)Show the deadweight loss due to the tax on your diagram.

Consider the Following Supply and Demand Schedule