Consider a market with a demand curve of P = 15 - q and a supply curve of P = 2q.If the government levies a tax on consumers of $3 per unit, what are the prices paid by consumers (Pc) and the price received by suppliers (Ps) ?
A) Pc = 10, Ps = 7.
B) Pc = 12, Ps = 9.
C) Pc = 10, Ps = .10
D) Pc = 11, Ps = 8.
E) Pc = 13, Ps = .10
Correct Answer:
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