I)The demand for rutabagas is Q 2, 000 − 100P and the supply of rutabagas is Q −100 + 200P.
a. Who bears the statutory incidence of a $2 per unit sales tax on rutabagas, paid by the
producer and reected in the sticker price?
b. Who bears the economic i
ncidence of this tax? (Discuss)
c. What is the equilibrium price without the tax?
d. What is the equilibrium price with the tax?
e. What are the tax burdens on the consumer and producer?