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Suppose Suzuki has the following demand and supply function for Cultus VXL: Q d = 55 - 5PQ s = -50 + 10P After the
Suppose Suzuki has the following demand and supply function for Cultus VXL:
Qd = 55 - 5PQs = -50 + 10P
After the government decided to impose tax on the production of Cultus VXL, the new supply function:
Qs = -60 + 10P
Given the information above answer the following questions:
i)Find out the equilibrium price and quantity before tax.
ii)Find consumer and producer surplus before tax.
III) Determine government revenue and dead weight loss after tax
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