Course: Microeconomics - Supply and Demand

Source: Book of Microeconomics, Robert Frank

Demand is P = 28 - Q, while supply is P = 20, where P is expressed in dollars and Q is the weekly production units. a) Find and plot equilibrium price and quantity. b) If buyers must pay a tax of $4 per unit, what happens to the new quantity and to the prices paid by buyers and sellers? c) How is the burden of the tax distributed between the two and why?