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Description
Flashcards by Jasmine Wells, updated more than 1 year ago
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Created by Jasmine Wells
almost 9 years ago
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| Question | Answer |
| How to find new supply function when there is a tax? Pre: Qs= c+dP | With tax: Qs=c +d(P-t) Where t= value of tax |
| How to find consumer surplus | |
| How to find producer surplus | |
| How to calculate welfare loss | |
| Identifying tax burden of consumers and producers | Note that consumers is everything above the P* Producers everything below P* - Multiply by Qt |
| How to find new supply function when there is a subsidy? Pre: Qs= c +dP | Qs= c + d(P+s) Where s= subsidy value |
| Calculating shortage: Excess demand | Shortage = Qd-Qs |
| Calculating surplus: Excess supply | Surplus = Qs- Qd |
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