In the market for a good, the aggregate demand and supply are summarized by the following expressions: Qd (p) = 20−p & Qs (p) = 2p−4 Assume the government charges a per-unit tax of τ dollars on each unit of the good purchased by the consumers. If the resulting equilibrium quantity is 8 units of the good, what must be the value of the tax?

In the market for a good, the aggregate demand and supply are summarized by the following expressions: Qd (p) = 20−p & Qs (p) = 2p−4 Assume the government charges a per-unit tax of τ dollars on each unit of the good purchased by the consumers. If the resulting equilibrium quantity is 8 units of the good, what must be the value of the tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the market for a good, the aggregate demand and supply are summarized by the following expressions:

Q_d (p) = 20−p & Q_s (p) = 2p−4

Assume the government charges a per-unit tax of τ dollars on each unit of the good purchased by the consumers. If the resulting equilibrium quantity is 8 units of the good, what must be the value of the tax?

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