Solution for question 7,8 are attached looking for the answer to questions 9 ple

Question

Solution for question 7,8 are attached looking for the answer to questions 9 please (2 marks) In the market for bobcat fur, supply is described by the equation Q = 2 + P, and demand is described by Q = 3-4P. P is in dollars, and Q is in ounces of fur. Calculate the equilibrium quantity to two decimal places (2 marks) For the market in Question 7, use calculus to calculate price elasticity of demand, at 7. 8. equilibrium, to two decimal places. Make sure you attach the correct sign. Answer: Price elasticity of demand is 9. (3 marks) Refer again to the market in Question 7. Suppose the government charges a tax on bobcat fur, payable by the buyer. Using the elasticity method, calculate the share of the burden of the tax that falls on the seller. (Choose the closest answer from the list below) a. b. C. d, e. f. 0% 20% 4096 60% 80% 100%

Explanation / Answer

the price elasticity of demand is inelastic so the most of the burden will be on producer in this case its 60 %

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