If a $56 tax is placed on each unit of the product of Problem 46, what is the new equilibrium point?
In problem 46,
Find the equilibrium point for the following supply and demand functions.
Demand: p = 480 -3q
Supply: p = 17q + 80
Problems involve market equilibrium after taxation.
Use the following figure to answer Problems.

Transcribed Image Text:

140 Supply (after tax) Demand 120 Tax{ 100 Тах Supply (before tax) 80 20 40 60 80 100