Suppose the market for a good is described by the following equations: Qa60-3P and Qs = -20+5P 1. If the government asks the supplier to pay a 20% GST for every transaction: • What is the new supply and demand curve? • What is the new equilibrium of price paid by the consumers to producers? What is the new equilibrium quantity? How much is the total tax collected?

Suppose the market for a good is described by the following equations: Qa60-3P and Qs = -20+5P 1. If the government asks the supplier to pay a 20% GST for every transaction: • What is the new supply and demand curve? • What is the new equilibrium of price paid by the consumers to producers? What is the new equilibrium quantity? How much is the total tax collected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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