Question: QD= 30 - 4P QS= -6 + 8P t = 0.375 where t is a specific tax that has to be paid by suppliers. Calculate

QD= 30 - 4P

QS= -6 + 8P

t = 0.375 where t is a specific tax that has to be paid by suppliers.

Calculate

i. the equilibrium quantities with and without the tax

ii. the increase in the price paid by consumers and the fall in consumer surplus

iii. the fall in the price received by suppliers and the fall in producer surplus

iv. the tax revenue received by the government

v. the deadweight loss of the tax.

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