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Unformatted text preview: ary. $531. 25 b. How much revenue will the government raise by taxing Beatriz? Instructions: Enter your answer as a whole number. $375. 00 What is the combined change in government revenue and consumer surplus? Instructions: Enter your answer as a whole number. Include a negative sign if necessary. $156. 25 Does the new tax raise enough revenue for the government to compensate Beatriz for her loss?
No rev is ed jrl 08082011 http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 2/5 1/21/2014 Assignme nt Pr int Vie w Section: Dissecting the Effects of a Price Change Graphing Beatriz enjoys writing and uses a large amount of paper. Currently, paper costs $2.00 for 100 sheets. The
formula for her demand curve is where PS is the price of 100 sheets and S is the number of packages of 100 sheets. The governor of her state
has proposed taxing paper at the rate of $1.50 for each 100 sheets. Assume this policy would increase the
price of paper to $3.50 (including tax). Draw Beatriz's demand curve. Instructions: Use the tool provided "Dema...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.
- Fall '13