QUESTION 4 Consider the linear demand curve: D(p) = 10 - 2p (a) What is the consumer surplus when p=2? Show it by using calculus or graph, not both. (b) If the government imposes a one-dollar tax on the price p=2, what is the change in consumer surplus? What is the using calculus or graph, not both.
QUESTION 4 Consider the linear demand curve: D(p) = 10 - 2p (a) What is the consumer surplus when p=2? Show it by using calculus or graph, not both. (b) If the government imposes a one-dollar tax on the price p=2, what is the change in consumer surplus? What is the using calculus or graph, not both.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 8PA
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