Wednesday, 29 March 2017

Producer surplus

The domestic market of good X is described by the equations: Qd = 200 - P & Qs = 20 + 2P. Calculate the producer surplus.



Producer surplus (PS) is defined as the difference between what producers are willing to receive and what they actually receive from the sale of the good or service.


Indirect Tax (ad valorem)

The domestic market of good X is described by the equations: QD = 200 - P & Qs = 20 + 2P.  The government decides to intervene in the m...