Question
The demand for sausages is Q = 280 + 8P and the supply of sausages is Q = 12P + 20. A per-sausage tax of
The demand for sausages is Q = 280 + 8P and the supply of sausages is Q = 12P + 20. A per-sausage tax of $2 is levied on vendors. Calculate the after-tax price paid by consumers and the after-tax price received by sausage vendors. What would the price be without the tax?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
