Market demand for candy bars can be determined by the following equation Qd= 50- 3P while market supply is determined by the following Qs = -10 +2P
Answer the following questions
1. What is the maximum price for suppliers to produce any candy bars?
2. What is the maximum price for consumers to buy any candy bars?
3. The government wants to impose a tax on candy bars and they will apply this tax to suppliers. The government will charge a tax of $1.00 on each candy bar sold. What will be the price paid by consumers for the candy bars, the price received by the suppliers for the product, the new quantity transacted and the tax revenue received by the government?
4. Now the government wants to impose a $1.00 tax to consumers and not the supplier. What will be the price paid by consumers for the candy bars, the price received by the suppliers for the product, the new quantity transacted and the tax revenue received by the government?
Market demand for candy bars can be determined by the following equation Qd= 50- 3P while market supply is determined by the following Qs = -10 +2P
Answer the following questions
1. What is the maximum price for suppliers to produce any candy bars?
2. What is the maximum price for consumers to buy any candy bars?
3. The government wants to impose a tax on candy bars and they will apply this tax to suppliers. The government will charge a tax of $1.00 on each candy bar sold. What will be the price paid by consumers for the candy bars, the price received by the suppliers for the product, the new quantity transacted and the tax revenue received by the government?
4. Now the government wants to impose a $1.00 tax to consumers and not the supplier. What will be the price paid by consumers for the candy bars, the price received by the suppliers for the product, the new quantity transacted and the tax revenue received by the government?
