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The supply and demand for lightbulbs is given by the following equations: (Demand) PD = 30 QD (SUDply) P3 = :QS (a) Find the equilibrium
The supply and demand for lightbulbs is given by the following equations: (Demand) PD = 30 QD (SUDply) P3 = :QS (a) Find the equilibrium price and quantity of lightbulbs. (b) Suppose that a $5 tax is imposed on sellers of lightbulbs. What is the equilibrium quantity of lightbulbs sold after the tax QT? What price do buyers pay (PD ), and What price do sellers effectively receive (PS )? (c) How much tax revenue is collected by the government? What fraction of this is paid by the consumers? By the producers? (d) What is the deadweight loss caused by the tax
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