Question: Suppose demand and supply are given by a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $ 12 excise tax

Suppose demand and supply are given by

a. Determine the equilibrium price and quantity. Show the equilibrium graphically.
b. Suppose a $ 12 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 $ 12tax?

Q = 14 - 14 --P, and Q; =-P, - 1 4

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