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i laecon1.lyryx.com/studentservlets/LabServlet?ccld:4084 The supply of gazebos is given by P = 5 + 0.40; demand is given by P = 9. Aspecic tax of $2
i laecon1.lyryx.com/studentservlets/LabServlet?ccld:4084 The supply of gazebos is given by P = 5 + 0.40; demand is given by P = 9. Aspecic tax of $2 per unit is subsequently imposed and that shifts the supply curve to P = 7 + 0.40. a) Solve for the equilibrium price and quantity before and after the tax. Equilibrium price before tax = $ 0 Equilibrium quantity before tax = 0 Equilibrium price after tax = $ 0 Equilibrium quantity after tax = 0 b) Draw the demand curve and two supply curves. v Demand Price _. 01 l olliliiliiiiioiioiililllliliil 3 6 9121518 2124 27_ m Quantity w c) Who bears the burden of the tax? (Select one)
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