(Advanced analysis)The equations for the demand and supply curves for a particular product are P = 10 − 0.4 Q and P = 2 + 0.4 Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4 Q. The excise tax on each unit of the product

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The excise tax is the difference between the old and new supply equations. The old supply equation is P = 2 + 0.4 Q, and the new supply equation is P = 3 + 0.4 Q. The difference between these two equations is P = 1, which means that the excise tax is $1 per unit.

(Advanced Analysis)The Equations for the Demand and Supply Curves for a Particular