Consider the market for a good, where demand and supply are given by the following equations....

  

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Consider the market for a good, where demand and supply are given by the following equations. P=34-Qd P=10+2Q, With the aid of a labelled diagram analyse the economic effects of a $3 per unit tax on this good, charged to consumers. P Q (1 mark) Initial Equilbrium Quantity_ _(1 mark) (1 mark) New Consumers' (tax included) Price_ Initial Equilibrium Price_ New Equilibrium Quantity_ New Producers' Price_ Burden of the Tax on Consumers Tax Revenue to the Government_ (1 mark) (1 mark) (2 marks) Burden of the Tax on Producers_ (1 mark) (2 marks) Consider the market for a good, where demand and supply are given by the following equations. P=34-Qd P=10+2Q, With the aid of a labelled diagram analyse the economic effects of a $3 per unit tax on this good, charged to consumers. P Q (1 mark) Initial Equilbrium Quantity_ _(1 mark) (1 mark) New Consumers' (tax included) Price_ Initial Equilibrium Price_ New Equilibrium Quantity_ New Producers' Price_ Burden of the Tax on Consumers Tax Revenue to the Government_ (1 mark) (1 mark) (2 marks) Burden of the Tax on Producers_ (1 mark) (2 marks)

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To analyze the economic effects of a 3 per unit tax on this good charged to consumers lets start by determining the initial equilibrium price and quantity Given the demand equation P 34 Qa And the sup... View the full answer