Consider perfectly competitive constant cost industry. If the government imposes a taxon consumers of $t per unit, in the long run the tax incidence willa) be split between the consumer and the producers.b) fall exclusively on the producers.c) fall exclusively on the consumers.d) cannot be determined based on the information provided.

Consider a perfectly competitive constant cost industry. If the government provides a subsidy toproducers of t per unit, in the long run the incidence of the subsidy willa) be split between the consumer and the producers.b) fall exclusively on the producers.c) fall exclusively on the consumers.d) cannot be determined based on the information provided.

Consider a market in which the law of demand hold, but supply is perfectly inelastic. The government levies a tax on consumers of t per unit consumed. In this case Group of answer choicesConsumer and suppliers share the incidence of the tax; the DWL is increasing in the price elasticity of demand.Consumer and supplier share the incidence of the tax; there is no DWL.Suppliers pay for part of the tax; the DWL is increasing in the price elasticity of demand.Suppliers pay for all of the tax; the DWL is zero.None of the above.

If the government imposes a per-unit tax on the output of a monopoly with a downward-sloping demand curve, the burden of the tax will be ashared by consumers and the monopolist bshared by the monopolist and the government cborne entirely by the government dborne entirely by consumers

Consider a market with demand curve 𝐷 = 25 − 3𝑝 and supply curve 𝑆 = −4 + 4𝑝. The unit of price is dollar. (a) Find the competitive equilibrium. (b) Compute consumer surplus and producer surplus at the equilibrium. (c) The government decides to impose a tax of $2 per unit. Compute the competitive equilibrium with the tax. (d) Compute consumer surplus, producer surplus and tax revenue at the new equilibrium.

True or false: Perfectly competitive markets lead to efficient production and consumption. Question 9 options: True False