Suppose demand and supply are given byqxd 7- 12px andqxs

Assignment Help Business Economics

Suppose demand and supply are given by

Qxd =7- 1/2Px and

Qxs =1/4Px-1/2

• Determine the equilibrium price and quantity

• Suppose a $6 excise tax is imposed on the good.

Determine the new equilibrium price and quantity

• How much tax revenue does the government earn with $6 tax.

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