Consider the fictious good Derp. The demand for Derp is Q = 1200 - 2p. Suppose the supply is given by Q+-600+2P. Enter numbers only. If decimal, include decimal and round to nearest tenth.
- What is the equilibrium price of Derp?
- What is the equilibrium quantity of Derp?
- What is the price elasticity of demand at the equilibrium price and quantity?
- What is the price elasticity of supply at the equilibrium price and quantity?
For the next seven questions, suppose a per unit excise tax of $50 per Derp is levied on the consumers.
- What price will sellers receive after the tax is levied?
- What price will consumers pay after the tax is levied?
- What percent of the tax will be paid by the consumers of Derp? (give answer between 0-100)
- What percent of the tax will be paid by the suppliers of Derp? (give answer between 0-100)
- How many Derps will be sold after the tax is imposed?
- How much consumer surplus do consumers get after the tax?
- What is the deadweight loss created by this tax?