This preview shows page 1. Sign up to view the full content.
Unformatted text preview: a short and long run equilibrium. 4. What is the long run supply curve (assuming perfect competition, free entry, and no tax)? 5. What is the long run supply curve with a $1 per unit tax imposed? 6. With a $1 per unit tax, what is the long run price and quantity? How is the burden of the tax distributed between producers and consumers? 7. Compare the dead weight loss in the short run and in the long run Good practice problems from Perloff: 31, 32, 33, 34, 35, 36....
View Full Document
- Spring '07
- Market Equilibrium