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If the function of demand and supply on the following image And the government decided to impose a tax of 30$ on each unit sold.
If the function of demand and supply on the following image
And the government decided to impose a tax of 30$ on each unit sold. The following is required:
1- The equilibrium quantity before tax? 2- Equilibrium price before tax? 3-Equilibrium quantity after tax? 4- Equilibrium price after tax? 5- How much does the consumer bear from the tax? 6- How much tax does the product bear?
P= 120 - 400 P=60 + 2QsStep by Step Solution
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