microbook_3e-page55

microbook_3e-page55 - price per brownie 6. The demand and...

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5. The table gives the demand and supply schedules for chocolate brownies: a. If brownies are not taxed, what is the price of a brownie and how many are consumed? b. If brownies are taxed at $0 . 20 each, what is the price and how many brownies are consumed? What is government revenue? c. How much of the tax is paid by consumers? How much of the tax is paid by producers? price per brownie quantity demanded (in millions) quantity supplied (in millions) $0 . 50 5 3 $0 . 60 4 4 $0 . 70 3 5 $0 . 80 2 6 $0 . 90 1 7 6. The demand and supply schedules for roses are: a. If there is no tax on roses, what is the price and how bunches are bought? b. If a tax of $6 a bunch is introduced, what is the price and how many bunches are bought? What is government revenue? c. How much of the tax is paid by consumers? How much of the tax is paid by producers? price per bunch quantity demanded (bunches per week) quantity supplied (bunches per week) $10 5 3 $12 4 4 $14 3 5 $16 2 6 $18 1 7 5. The accompanying table lists the cross-price elasticities of demand for several goods:
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