Suppose that you have an inverse demand curve (Pd = a - bQd) with an intercept of 19 and a slope coefficient of 3. You also have an inverse supply curve (Ps = c + dQs) with intercept 4 and slope 2. suppose there is a 50% tax on the good, and the government bills the seller for the tax. After the tax, what is the new equilibrium price that consumers pay? How much tax does the government collect per unit? [one decimal place please]
Suppose that you have an inverse demand curve (Pd = a - bQd) with an intercept of 19 and a slope coefficient of 3. You also have an inverse supply curve (Ps = c + dQs) with intercept 4 and slope 2. suppose there is a 50% tax on the good, and the government bills the seller for the tax. After the tax, what is the new equilibrium price that consumers pay? How much tax does the government collect per unit? [one decimal place please]
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 10P
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![Suppose that you have an inverse demand curve (Pd = a - bQd) with an intercept of 19 and a slope coefficient of 3. You also have an inverse supply curve (Ps = c +
dQs) with intercept 4 and slope 2. suppose there is a 50% tax on the good, and the government bills the seller for the tax. After the tax, what is the new equilibrium price
that consumers pay? How much tax does the government collect per unit? [one decimal place please]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa11daaea-d390-4ddb-8e62-e425c577a0c0%2F853e29cb-fafb-4413-9604-849ed85327da%2Frgcuni_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that you have an inverse demand curve (Pd = a - bQd) with an intercept of 19 and a slope coefficient of 3. You also have an inverse supply curve (Ps = c +
dQs) with intercept 4 and slope 2. suppose there is a 50% tax on the good, and the government bills the seller for the tax. After the tax, what is the new equilibrium price
that consumers pay? How much tax does the government collect per unit? [one decimal place please]
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