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4. After levying tax on consumers, new supply and demand curve given as Qs=P. Qd=100-(P+T). (Qd stands for quantity demanded, Qs quantity supplies, P is price, T is tax on consumers.) (1) what is the tax revenue function in equilibrium? (2) what is unit tax amount T when maximizing government tax revenue?

4. After levying tax on consumers, new supply and demand curve given as Qs=P. Qd=100-(P+T). (Qd stands for quantity demanded, Qs quantity supplies, P is price, T is tax on consumers.) (1) what is the tax revenue function in equilibrium? (2) what is unit tax amount T when maximizing government tax revenue?

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.10P
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4. After levying tax on consumers, new supply and demand curve given as Qs=P. Qd=100-(P+T). (Qd stands for quantity demanded, Qs quantity supplies, P is price, T is tax on consumers.) (1) what is the tax revenue function in equilibrium? (2) what is unit tax amount T when maximizing government tax revenue?
Transcribed Image Text:4. After levying tax on consumers, new supply and demand curve given as Qs=P. Qd=100-(P+T). (Qd stands for quantity demanded, Qs quantity supplies, P is price, T is tax on consumers.) (1) what is the tax revenue function in equilibrium? (2) what is unit tax amount T when maximizing government tax revenue?
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