You have the following information from the market Demand function: QD=280−5P Supply function: QS=−70+5P 1. What is the willingness to buy?

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
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You have the following information from the market Demand function: QD=280−5P Supply function: QS=−70+5P

1. What is the willingness to buy?

2. What is the economic cost of the sellers?

The government has imposed a tax regulation of 10 takas. Assume that buyers and sellers both share the tax burden equally.

3. What is the consumer surplus after tax?

4. What is the producer surplus after tax?

5. What is the tax revenue?

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