1 suppose the demand for a product is given by p


1. Suppose the demand for a product is given by P = 50 - Q. Also, the supply is given by P = 10 + 3Q. If a $12 per unit excise tax is levied on the buyers of a good, after the tax, the total quantity of the good sold is

A) 6
B) 10
C) 31
D) 7

E) None of these


2. Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q. If a $8 per unit excise tax is levied on the buyers of a good, after the tax, the total amount of tax paid by the producers is

A) 81
B) 72
C) 54
D) 4

E) None of these

3. Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q. If an $8 per unit excise tax is levied on the buyers of a good, government revenue is equal to:

A) 81
B) 72
C) 243
D) 4
E) None of these

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Econometrics: 1 suppose the demand for a product is given by p
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