Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine: a) Demand and supply equation after tax b) Buyer's price after tax c) Seller's price after tax
Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine: a) Demand and supply equation after tax b) Buyer's price after tax c) Seller's price after tax
Chapter4: Markets In Action
Section: Chapter Questions
Problem 13SQ
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Given the following information
QD = 240 - 5P
QS = p
where QD is the quantity demand, QS is the quantity supplied and P is the price.
Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine:
a) Demand and supply equation after tax
b) Buyer's price after tax
c) Seller's price after tax
d) Quantity after tax
e)
f)
g) Tax revenue
h)
i) Total surplus after tax
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