Question: 1. 6.10 The estimated demand function for coffee is Q = 12- p (Equation 2.3), and the estimated sup ply function is Q = 9

1. 6.10 The estimated demand function for coffee is Q = 12- p (Equation 2.3), and the estimated sup ply function is Q = 9 + 0.5p (Equation 2.7).

a. Write equations for the equilibrium price and quantity as a function of a specific tax t.

b. What are the equilibrium price and quantity and the tax incidence on consumers if t = $0.75? M


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