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Suppose that a market is described by the following supply and demand equations: Qs = 2P Qo 300-P Suppose that a tax of 7
Suppose that a market is described by the following supply and demand equations: Qs = 2P Qo 300-P Suppose that a tax of 7 is placed on buyers, so the new demand equation is as follows: Qo 300 (P+T) The new equilibrium price is now P = 100, and the new equilibrium quantity is Q = 200 - Tax revenue is T xQ. Use the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 90, 150, 210, 270, and 300. ?
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