What is the equilibrium price and quantity

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Consider a demand curve of the form QD = 30 - 2P, where QD is the quantity demanded and P is the price of the good. The supply curve takes the form of QS = -3 + P, where QS is the quantity supplied, and P is the price of the good. Be sure to put P on the vertical axis and Q on the horizontal axis.

a. What is the equilibrium price and quantity? Draw a out the supply and demand curves to illustrate this equilibrium.

b. Assume a tax of t is placed on the buyers in this market. Find the tax rate that maximizes tax revenue. (Note: this will require calculus). (This specifically I need help with)

Reference no: EM131865326

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