Question: L O 3 , L O 4 Q x d = 1 4 - 1 2 P x and Q x s = 1 4

LO3,LO4
Qxd=14-12Px and Qxs=14Px-1
a. Determine the equilibrium price and quantity. Show the equilibrium graphically.
b. Suppose a $15 excise tax is imposed on the good. Determine the new equilibrium price and quantity.
c. How much tax revenue does the government earn with the $15 tax?
L O 3 , L O 4 Q x d = 1 4 - 1 2 P x and Q x s = 1

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