problem set 1

problem set 1 - p β(800)p=1200 β p=1200/800 β Post tax...

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Fernando Omegna Rocha Ferreira Problem set 1: a) 1000-200p=8000p p=1, Q=800 b) D’=1200-200p 1200-200p=800p p=1,2; Q’=960 c) The taste of the consumers may have changed, making them prefer apples to other fruits, therefore increasing the demand for apples. d) S=800p p=S/800 p=S/800+0.5 S=800p-400 800p-400=1200-200p p=1.6; Q=880 e) pre tax: =200 β S=800p D=1200- p β 800p=1200-

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Unformatted text preview: p β (800+ )p=1200 β p=1200/800+ β Post tax: S=800p-400 D=1200- p β 800p-400=1200- p β (800+ )p=1600 β p=1600/800+ β p=(1200/800+ ) – (1600/800+ ) Δ β β p= 400/800+ Δ β Δp= 400/1000 Δp=0,4 f) The steepness of the supply and demand curve determines which side bears the burden. The steeper the curve, the greater the burden....
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problem set 1 - p β(800)p=1200 β p=1200/800 β Post tax...

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