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    Tax revenue

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    Use the graph below that shows the effect of a $4 per-unit
    tax on suppliers to answer the following questions:
    a. What are equilibrium price and quantity before the
    tax? After the tax?
    b. What is producer surplus when the market is in
    equilibrium before the tax? After the tax?
    c. What is consumer surplus when the market is in
    equilibrium before the tax? After the tax?
    d. What is total tax revenue collected after the tax is
    implemented.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:03 am ad1c9bdddf
    https://brainmass.com/economics/general-equilibrium/tax-revenue-microeconomics-319417

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    a) Before tax, equilibrium price = $6 and quanitity = 200 units

    After tax, equilibrium price = $8 and ...

    Solution Summary

    Tax revenue is computed.

    $2.19