7. Taxation - An algebraic approach Suppose the supply of a good is given by the equation 3 = 600P 600, and the demand for the good is given by the equation D = 1,400 2001', where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $2.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows: 1. The equilibrium quantity produced 2. The equilibrium price consumers pay for the good 3. The price received by sellers Before Tax After Tax Equilibrium Quantity (Millions of units) _V _v Equilibrium Price per Unit Paid by Consumers V V Price per Unit Received by Sellers 7 v Given the information you calculated in the preceding table, the tax incidence on consumers is V per unit of the good, and the tax incidence on producers is V per unit of the good. The government receives V in tax revenue from levying an excise tax of $2.00 per unit on this good. True or False: The price ultimately received by the seller (that is, the amount of money that the seller gets to keep after receiving payment from the buyer and paying any applicable taxes) would have been different if the tax had been levied on buyers instead. 0 True 0 False