14. A tax on consumers will cause the demand curve to shift a) right. b) left. c)up. d) down. e) innone of the above directions. 15. Partial equilibrium is a) exactly like general equilibrium. b) studying only the supply side of the market. c) studying individual markets. d) examining the demand side of the market. Discussion Questions 1. Consider a monopolist who has a total cost curve of: TC=7X+(1/2)X 2. The market demand equation isX d =386-(1/2)P. a) What are the equilibrium quantity, equilibrium price, and profits in this market? b) Suppose that a unit tax of$1 is placed on the monopolist. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? c) Suppose that the same unit tax of$1 is placed on consumers. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? d) What can be said about the taxes? 2. Refer to Figure in your textbook. Suppose the original before-tax demand curve is X d=49– P/2. Suppose further that supply isX= P/2 –1. Now suppose a$3 unit tax is imposed on consumers. a) What is the before- tax equilibrium price and quantity? b) What is the after- tax equilibrium quantity? c) How much tax revenue is raised? 3. From Question 2 above, calculate the economic incidence incurred by producers and the economic incidence incu
