Reference no: EM132413395

Complete the table below by filling in ALL missing numbers. If your answer is a decimal rather than a whole number, round your answer to the nearest 1 decimal place (the nearest tenth). Also, do not enter leading zeroes. 

For example, if the answer to a field is 1/8, enter .1 

Do not enter .125 or 0.13 or 0.1 

Suppose you are hired by the Martin guitar company as an economic consultant. You estimate the demand for Martin guitars to be Q = 8000 - 2P. Suppose the supply of Martin Guitars is given by Q = -2000 +3P.

1. What is the equilibrium price of Martin guitars? 

2. What is the equilibrium quantity of Martin guitars?

3. What is the price elasticity of demand at the equilibrium price and quantity?

4. What is the price elasticity of supply at the equilibrium price and quantity?

For the next seven questions, suppose a per-unit excise tax of $40 per guitar is levied on the consumers.

1. What price will sellers receive after the tax is levied?

2. What price will consumers pay after the tax is levied?

3. What percent of the tax will be paid by the consumers of Martin guitars?

4. What percent of the tax will be paid by the suppliers of Martin guitars?

5. How many guitars will be sold after the tax is imposed?

6. How much consumer surplus do consumers get after the tax?

7. What is the deadweight loss created by this tax?