Scenario 8-3

Suppose the market demand and market supply curves are given by the equations:

Q^D= 200 - P
-Refer to Scenario 8-3. Suppose that a tax of T is placed on buyers so that the demand curve becomes:
Q^D= 200 - (P + T)
What will be the deadweight loss from this tax?

Question

Quizplus · Accepted Answer

The Answer of Scenario 8-3 Suppose the market demand and market supply curves are given by the equations: Q D = 200 - P -Refer to Scenario 8-3. Suppose that a tax of T is placed on buyers so that the demand curve becomes: Q^D= 200 - (P + T) What will be the deadweight loss from this tax?

Scenario 8-3 ​

Scenario 8-3