Figure 14.2
-Refer to Figure 14.2 .Suppose the original before-tax demand curve for CD players is P = 100 - 2Q_d.Suppose further that supply is P = 5 + 3Q_s.Now suppose a $5 unit tax is imposed on consumers.
(A)What is the before?tax equilibrium price and quantity?
(B)What is the after?tax equilibrium price and quantity?
(C)How much tax revenue is raised?

Question

Figure 14.2 -Refer to Figure 14.2 .Suppose the original before-tax demand curve for CD players is P = 100 - 2Q<sub>d</sub>.Suppose further that supply is P = 5 + 3Q<sub>s</sub>.Now suppose a $5 unit tax is imposed on consumers. (A)What is the before?tax equilibrium price and quantity? (B)What is the after?tax equilibrium price and quantity? (C)How much tax revenue is raised?

Quizplus · Accepted Answer

The Answer of Figure 14.2 -Refer to Figure 14.2 .Suppose the original before-tax demand curve for CD players is P = 100 - 2Q_d.Suppose further that supply is P = 5 + 3Q_s.Now suppose a $5 unit tax is imposed on consumers. (A)What is the before?tax equilibrium price and quantity? (

Figure 14.2 -Refer to Figure 14.2 .Suppose the Original Before-Tax Demand Curve