(Advanced analysis)Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q,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 + .4Q. Refer to the given information.The excise tax on each unit of the product:

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Quizplus · Accepted Answer

The excise tax is the difference between the old and new supply equations. The old supply equation is P = 2 + .4Q, and the new supply equation is P = 3 + .4Q. The difference between these two equations is P = 1, which means that the excise tax is $1 per unit.

(Advanced Analysis)Answer the Question on the Basis of the Following