Indicate changes in consumer surplus and producer surplus

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Reference no: EM13831220

What will happen to the equilibrium price and quantity of hairy crabs if:

(i) it is reported that hazardous chemicals are found in the crabs.

(ii) some of the breeding grounds are banned by the Chinese government due to unsatisfactory hygienic conditions.

Explain your answers with diagrams:

Under increasing fiscal pressure, suppose that the Hong Kong SAR Government decides to levy a per unit tax (t) on sellers of all goods,

(i) Use a diagram to show the tax burden on buyers and sellers and briefly explain your answer. (ii) use a separate diagram to indicate the changes in consumer surplus and producer surplus and briefly explain your answer.

Reference no: EM13831220

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