Excel | Microsoft 3.. The supply of gazebos is given by P = 2 +0.50; demand is given by P = 7. A specific tax of $3 per unit is subsequently imposed and that shifts the supply curve to P = 5 +0.50. a) Solve for the equilibrium price and quantity before and after the tax. Equilibrium price before tax = $0 Equilibrium quantity before tax = 0 Equilibrium price after tax = $0 Equilibrium quantity after tax = 0 b) Draw the demand curve and two supply curves. c) Who bears the burden of the tax? MacBook Pro

Excel | Microsoft 3.. The supply of gazebos is given by P = 2 +0.50; demand is given by P = 7. A specific tax of $3 per unit is subsequently imposed and that shifts the supply curve to P = 5 +0.50. a) Solve for the equilibrium price and quantity before and after the tax. Equilibrium price before tax = $0 Equilibrium quantity before tax = 0 Equilibrium price after tax = $0 Equilibrium quantity after tax = 0 b) Draw the demand curve and two supply curves. c) Who bears the burden of the tax? MacBook Pro

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Excel | Microsoft 3.. The supply of gazebos is given by P = 2 + 0.50; demand is given by P = 7. A specific
tax of $3 per unit is subsequently imposed and that shifts the supply curve to P = 5 +0.50. a) Solve for the
equilibrium price and quantity before and after the tax. Equilibrium price before tax = $0 Equilibrium
quantity before tax = 0 Equilibrium price after tax = $0 Equilibrium quantity after tax = 0 b) Draw the
demand curve and two supply curves. c) Who bears the burden of the tax? MacBook Pro

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Step 3: Draw the demand and supply curve

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