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Answer to Question #69235 in Microeconomics for amanda
Question #69235
Tax. Determine the SWL.
D: P = 440 - 2Q
S: P = 40 + 2Q
Tax: P = 80
D: P = 440 - 2Q
S: P = 40 + 2Q
Tax: P = 80
Expert's answer
440-2Q=40+2Q
4Q=400
Q=100
SWL=P(tax)*Q=80*100=8000
4Q=400
Q=100
SWL=P(tax)*Q=80*100=8000
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