Suppose that in a certain market the demand function for a product is given by 10p + q = 2300 and the supply function is given by 45p - q = 360. If the government levies a tax of $2 per item on the supplier, who passes the tax 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.

Transcribed Image Text:

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