I'm studying for my economics for managers exam. Pretty simple questions, and it will star
I'm studying for my economics for managers exam. Pretty simple questions, and it will start making sense once I'm shown the answer, then i can use for different scenarios...
Q: Suppose that the demand equation P=6-Q and the supply equation P=Q.
a) calculate the price elasticity of demand at equilibrium
b) calculate the equilibrium price, and quantity, and consume surplus and producer surplus
c) Suppose the government imposes a unit tax of $1 for each unit of output. Derive the new supply curve and new equilibrium price and quantity
d) calculate the tax revenue and deadweight loss of this tax