(a) What is the amount of the tax?
(b) What are the original equilibrium price and quantity?
(c) What are the new equilibrium price and quantity?
(d) Does the supplier suffer from the tax even though it is passed on?
Problems involve market equilibrium after taxation.
Use the following figure to answer Problems.

Transcribed Image Text:

140 Supply (after tax) Demand 120 Тах100 Supply (before tax) 80+ 20 40 60 80 100