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Qs = Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of
Qs = Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. 1) The new supply curve is A) P = 5Q. B) P = 5 + 5Q. C) P = 5Q + 5. D) P =Q+5. E) none of the above. 2) The new equilibrium quantity is Co = as B) 2. C) 3. D) none of the above. 3) The new equilibrium price is A) 2. B) 7. C) 15. D) 10. E) none of the above
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