Suppose that a market is described by the following supply and demand equations:

Q

S

QS=

=2P

2PQ

D

QD=

=240P

240P

The equilibrium price in this market is, and the equilibrium quantity is units.

Suppose that a tax ofT

Tis placed on buyers, so the new demand equation is as follows:

Q

D

QD=

=240(P+T)

240P+T

The new equilibrium price is

, and the new equilibrium quantity is

.

The price received by sellers , the price paid by buyers , and the quantity sold .