Answered: pu = 50 - 2Q pS = 10 + 1Q Where prices…

pu = 50 - 2Q pS = 10 + 1Q Where prices are expressed in cents. How would you modify the equations to represent a unit tax of 6 cents per unit?

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

Assume that Demand and Supply are given by
the equations
pd = 50 - 2Q
pS = 10 + 1Q
Where prices are expressed in cents.
How would you modify the equations to
represent a unit tax of 6 cents per unit?

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