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Hello, I want to find the market equilibrium for a $2 tax on the producer and graph the answer. I got the following equations, and
Hello, I want to find the market equilibrium for a $2 tax on the producer and graph the answer. I got the following equations, and attached you can see my procedures.
The question goes as follows: Assuming that government places a tax of 2 USD on the producer, calculate and graph the new market equilibrium on the previous graphic. Calculate it when Qd=-02.P+32 and Qs=0.2+6.
\fP . E = Q d = ds P = mg +b - 0 . 2Q + 3 2 = 1 2+6 - Q + 32 = Q - 6 5 S 32- 6 Q+ UI - Q UN Q 6 Q = 2 6 2Q = 26 . 5 @* = 130 / 2 Q* = 65 PA (65 ) + 32 sustituisen PA = - 65 cualquera S + 32 pq sale = PA - - 13 + 32 pf = 19 P.E : ( 65, 19)32 (65, 19) ACs = b . h 2 65 CS = 65 .13 13 32-19 2 65 CS = 845 Z CS = 422.5 4 2 2. S 41 2Z. S 65 845. 0 13 Total surplus T . S = C . S + P. S P. S= (65. 13 ) T. S = 42 2. 5 + 422.5 2 T. S = 845 P. S = 845 2 P. S = 422.5Step by Step Solution
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