Question:Suppose that the Demand and Supply functions are : QD=800-4P
and QS=8P-160. The government imposes a...
Question
Suppose that the Demand and Supply functions are : QD=800-4P
and QS=8P-160. The government imposes a...
Suppose that the Demand and Supply functions are : QD=800-4P
and QS=8P-160. The government imposes a per unit tax of $3. After
the tax, the supply equation becomes: QS=8P-184. (Hint: you really
should draw a graph for this question, as you did in the Extra
Credit)
Find Government Revenues and Deadweight Loss (DWL) AFTER the
tax