Use the following table to answer the questions below:

a. What will the price and quantity bought and sold be?
b. The government imposes a $10 tax. Derive the supply curve
including the tax. What will the price and quantity bought and
sold be?
c. How much did the demand price of the good go up? How much
did the supply price, net of taxes, go down? What is the
demander’s burden of the tax (what percentage of the unit tax is
their price increase)? The supplier’s burden?

Transcribed Image Text:

Quantity Demand Price Supply Price 1 $11 $1 2 $8 $2 3 $6 $3 4 $4 $4 5 $2 $5 6 $1 $6