4 The demand for ice cream is given by QD = 20 - 2P, measured in gallons of ice cream. The supplyof ice cream is given by QS = 4P-10. Use negative signs where appropriate. Round to thenearest one-hundredth decimal place (0.01).a. Find the equilibrium price and quantity.Equilibrium Price: P = 5Equilibrium Quantity: Q = 10b. Suppose that the government legislates a $1 tax on a gallon of ice cream, to be collected from thebuyer. Find the new equilibrium price and quantity.New Equilibrium Price: P'= 5.66New Equilibrium Quantity: Q= 8.68c. How much of the tax do the buyers bear?d. How of the tax do the sellers bear?e. Calculate the consumer surplus after the tax.CS=f. Calculate the producer surplus after the tax.PS=g. Calculate the government revenue from the tax.GR=h. Calculate the deadweight loss created by the tax.DWL=

DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you.…

cream is given by QS = 4P - 10. Use negative signs where appropriate. Round to the st one-hundredth decimal place (0.01). d the equilibrium price and quantity. Orium Price: P = 5 orium Quantity: Q = 10 pose that the government legislates a $1 tax on a gallon of ice cream, to be collected from the Find the new equilibrium price and quantity. Equilibrium Price: P= 5.66 Equilibrium Quantity: Q= 8.68 w much of the tax do the buyers bear?

cream is given by QS = 4P - 10. Use negative signs where appropriate. Round to the st one-hundredth decimal place (0.01). d the equilibrium price and quantity. Orium Price: P = 5 orium Quantity: Q = 10 pose that the government legislates a $1 tax on a gallon of ice cream, to be collected from the Find the new equilibrium price and quantity. Equilibrium Price: P= 5.66 Equilibrium Quantity: Q= 8.68 w much of the tax do the buyers bear?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 10PA

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