The demand function D(p) = 200 - 4p and supply function is S(p)= 6p Find the equilibrium price and quantity If government collect $10 unit tax from each product, find the equilibrium demand and supply prices. How much tax revenue is collected? What is the deadweight loss amount as a result of taxation?

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter17: Taxation And Resource Allocation
Section: Chapter Questions
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  1. The demand function D(p) = 200 - 4p and supply function is S(p)= 6p

    1. Find the equilibrium price and quantity

    2. If government collect $10 unit tax from each product, find the equilibrium demand and supply prices.

    3. How much tax revenue is collected?

    4. What is the deadweight loss amount as a result of taxation?

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