22. A market is in equilibrium at the point P = $100, Q = 6000. You are told that at that point, the elasticity of demand is 1.2 (or 6/5) and the elasticity of supply is 3.6 (or 18/5). If a $1 per unit tax is placed on consumers in this market, then you know that the fraction of the tax (rounded to the nearest two decimal places) that falls on consumers (buyers) will be: A)0 B) 0.05 C) 0.10 D) 0.15 E) 0.17 F) 0.20 G) 0.25 H) 0.30 1) 0.33 J) 0.40 K) 0.42 L) 0.50 M) 0.54 N) 0.60 0) 0.65 P) 0.67 Q) 0.70 R) 0.75 S) 0.80 T) 0.83 U) 0.85 V) 0.90 W) 0.95 X) 1 Y) 0.77 Z) none of the above
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Related questions
The first column shows the number of donuts consumed, while the second and third columns (respectively) show Shane's and Miriam's marginal personal use values. Assume that Shane's initial endowment is three donuts, while Miriam's initial endowment is 13 donuts. Suppose that Miriam is allowed to set the price at which Shane can purchase additional donuts (beyond his initial endowment of three donuts). What price would Miriam set if her objective were:
To maximize her Total Revenues (that is, the number of donuts Shane purchases multiplied by the price set by Miriam);
To maximize Miriam's Producer Surplus (that is, Total Revenues minus Miriam's Total Costs, defined as her cumulative opportunity cost of selling donuts to Shane rather than consuming them herself);
To maximize Shane's and Miriam's Total Surplus (that is, Consumer Surplus plus Producer Surplus)
For each case, provide both your answers and a brief explanation of how you derived it
| Ā | Number of Donuts | Shane's Marginal Personal Use Value | Miriam's Marginal Personal Use Value |
| Ā | 0 | $0.00 | $0.00 |
| Ā | 1 | $2.00 | $1.50 |
| Ā | 2 | $1.90 | $1.45 |
| Ā | 3 | $1.80 | $1.40 |
| Ā | 4 | $1.70 | $1.35 |
| Ā | 5 | $1.60 | $1.30 |
| Ā | 6 | $1.50 | $1.25 |
| Ā | 7 | $1.40 | $1.20 |
| Ā | 8 | $1.30 | $1.15 |
| Ā | 9 | $1.20 | $1.10 |
| Ā | 10 | $1.10 | $1.05 |
| Ā | 11 | $1.00 | $1.00 |
| Ā | 12 | $0.90 | $0.95 |
| Ā | 13 | $0.80 | $0.90 |
| Ā | 14 | $0.70 | $0.85 |
| Ā | 15 | $0.60 | $0.80 |
| Ā | 16 | $0.50 | $0.75 |
| Ā | 17 | $0.40 | $0.70 |
| Ā | 18 | $0.30 | $0.65 |
| Ā | 19 | $0.20 | $0.60 |
| Ā | 20 | $0.10 | $0.55 |
| Ā | Ā | Ā | Ā |
| Ā | Ā | Initial allocations | Ā |
