Suppose the demand and supply for apples is given by the following supply and demand curves: Q_S = (1/3)P - (4/3)and Q_D = 12 - P.
a)Graph and calculate the equilibrium price [P*] and quantity [Q*].
b)Show that the effect of a per-unit tax of $1 levied on suppliers is the same as when levied on buyers.
c)What percent of the $1 per-unit tax is borne by sellers? What percent is borne by buyers?

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The Answer of Suppose the demand and supply for apples is given by the following supply and demand curves: Q_S = (1/3)P - (4/3)and Q_D = 12 - P. a)Graph and calculate the equilibrium price [P*] and quantity [Q*]. b)Show that the effect of a per-unit tax of $1 levied on suppliers is the same as when levied on buyers. c)What percent of the $1 per-unit tax is borne by sellers? What percent is borne by buyers?

Suppose the Demand and Supply for Apples Is Given by the Following