Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine demand the seller’s price after tax. Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine the quantity after tax
Given the following information:
QD = 240 – 5P
QS = P
Where QD is the quantity demanded, Qs is the quantity supplied and P is the
Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine
Given the following information:
QD = 240 – 5P
QS = P
Where QD is the quantity demanded, Qs is the quantity supplied and P is the price
Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine the quantity after tax
The demand and supply are given and the tax rate charged on the sellers is given to be $12. Thus, the new supply curve will be Qs = P-12 in which P is the price paid by the consumers and P-12 is the price received by the sellers. Thus, the buyer’s price can be calculated at the equilibrium as follows:
Thus, the seller’s price after tax is $30.
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