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1. Suppose the demand for a product is given by P = 100 - 2Q. The supply is given by P = 20 + 6Q. If an $8 per unit excise tax is levied on the buyers of a good, then after the tax the sellers will receive ______ for each unit of the good.
A) 82B) 80C) 74D) 9E) None of these
2. Suppose the demand for a product is given by P = 60 - 2Q. The supply is given by P = 10 + 3Q. If a $10 per unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax will be
A) 10B) 20C) 64D) 5E) None
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