AnsQ8 - = 10 what is the incidence ofthe tax in the short...

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90 Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen Quiz 8 You can use the back of this page as scrap. We will not look at the back when grading this quiz, so you should present your complete answer by the question. Consider an industry with a short run supply S(p)= lO+p, a demand curve given by D(p) = 90-p, and a long run supply of p=40. Graph these three curves. If a quantity tax is imposed oft
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Unformatted text preview: = 10, what is the incidence ofthe tax in the short run and what is the incidence in the long run? Show all prices on your graph. Explain briefly what happened. p k-b(p)~ go-P => p -= cto-Q!> w"'e. ... p = 0 -, Qr> '= "}O wb G.D~O-') p=-90 1 \A ~ ~ IlY ~.. P.D:::: If S-~ 4- 0 1'i.1.14 {. l)J0f. ~ it.< C\' J l.,t.( \..~. ~f,,)-~ 40 O:YM-~ \..-' 1M f!.r::.> t. .,t \:\. .L~' io fv-CJA~(,&I';;'I' P~= 3r .:::::. 4-0...
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