For the next seven questions suppose a per unit excise tax


Consider the market for laptops. The demand for laptops is - 3P. Suppose the supply of laptops is given by Q= -200 +2P. Enter numbers only. If decimal, include decimal and round to nearest tenth.

  • What is the equilibrium price of laptops?
  • What is the equilibrium quantity of laptops?
  • 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 $80 per laptop 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 laptops? (give answer between 0-100)
  • What percent of the tax will be paid by the suppliers of laptops? (give answer between 0-100)
  • How many laptops 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?

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Business Economics: For the next seven questions suppose a per unit excise tax
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