problem set 1

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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-
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: p (800+ )p=1200 p=1200/800+ Post tax: S=800p-400 D=1200- p 800p-400=1200- p (800+ )p=1600 p=1600/800+ p=(1200/800+ ) (1600/800+ ) p= 400/800+ p= 400/1000 p=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....
View Full Document

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online