Question 1

What is A per?

Accepted Answer

unit tax shifts supply up by the tax in buyer-price space

Question 2

What is Buyer price minus seller price equals the tax?

Accepted Answer

$p_b - p_s = t$

Question 3

What is Tax revenue equals $t$ times post?

Accepted Answer

tax quantity: $TR = t\cdot x_{tax}$

Question 4

What is Elasticities at equilibrium?

Accepted Answer

$\varepsilon_D = -b\,p/x$, $\varepsilon_S = a\,p/x$

Question 5

What is Supply more elastic?

Accepted Answer

> buyers bear larger share; supply less elastic -> sellers bear larger share

Question 6

What is Real?

Accepted Answer

world incidence varies by time horizon; short-run and long-run elasticities differ

Foundations of Microeconomics Problem Sets

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