Question: Please show all work. Thanks! Problem 2 You've been given the following: =30 - 2p qs = -10 + 2p (a) Graph the supply and

Please show all work. Thanks!

Problem 2 You've been given the following: =30 - 2p qs = -10 + 2p (a) Graph the supply and demand curves. Show the equilibrium price and quantity on the graph (just label as p* and q*). (b) Solve the equilibrium price and quantity. (c) Now, assume a $2 per unit tax is applied to the buyer. What is the new market quantity and price? (d) How much tax revenue is generated? (e) How much tax burden do the buyer and seller bear? (f) Calculate the consumer surplus, producer surplus, and deadweightloss with this tax
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
