Suppose that a certain product has the following demand and supply functions.
Demand: p = - 8q + 2800
Supply: p = 3q + 35
If a $15 tax per item is levied on the supplier, who passes it on to the consumer as a price increase, find the market equilibrium point after the tax?
Problems involve market equilibrium after taxation.
Use the following figure to answer Problems.

Transcribed Image Text:

140 Supply (after tax) Demand 120 Тах100 Supply (before tax) 80+ 20 40 60 80 100