Question: Suppose that in a certain market the demand function for a product is given by 60p + q = 2100 and the supply function is

Suppose that in a certain market the demand function for a product is given by 60p + q = 2100 and the supply function is given by 120p - q = 540. Then a tax of $0.50 per item is levied on the supplier, who passes it on to the consumer as a price increase. Find the equilibrium price and quantity after the tax is levied?
Problems involve market equilibrium after taxation.
Use the following figure to answer Problems.
140 Supply (after tax) Demand 120 Тах100 Supply (before tax) 80+ 20 40 60 80 100

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

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