Graph the supply and demand curves. Find the equilibrium price and quantity. Unlike the example in...

  

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Graph the supply and demand curves. Find the equilibrium price and quantity. Unlike the example in the lecture note, now the government legislate a $1 tax to be collected from producers. In other words, producers have to pay the tax. Find a new market quantity. Also, find the price that consumer pay, and the price that producers actually receive. How much the tax revenue did the government raise? QD = 20 - 2P Qs = 4P - 10 Graph the supply and demand curves. Find the equilibrium price and quantity. Unlike the example in the lecture note, now the government legislate a $1 tax to be collected from producers. In other words, producers have to pay the tax. Find a new market quantity. Also, find the price that consumer pay, and the price that producers actually receive. How much the tax revenue did the government raise? QD = 20 - 2P Qs = 4P - 10

Answer rating: 100% (QA)

To find equilibrium price and quantity we equate the demand equation to the supply equation 4P... View the full answer