Suppose the demand curve for pizza can be represented byQ = 20 – 2Pand the supply curve can be represented byQS = P-1Suppose the government imposes a $6 tax per pizza.a) How much more will consumers now pay for a pizza?b) What is the tax revenue given a tax rate of $6/unit?

Given:Qs = P - 1Qd = 20 -2PTax = 6 First, let's get the price paid by consumers by equating Qs and…

Answered: Suppose the demand curve for pizza can…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the demand curve for pizza can be represented by Q = 20 – 2P and the supply curve can be represented by QS = P-1 Suppose the government imposes a $6 tax per pizza. a) How much more will consumers now pay for a pizza? b) What is the tax revenue given a tax rate of $6/unit?