Question: the demand and supply curves for a product are given...
The demand and supply curves for a product are given in terms of price, p, by q = 2600 - 20p and q = 10p - 400
A. Find the equilibrium price and quantity.
B. A specific tax of $12 per unit is imposed on suppliers. Find the new equilibrium price and quantity. The new equilibrium price (including tax) is $______ and the new equilibrium quantity is ______ units.
C. How much of the $12 tax is paid by consumers and how much by producers? The tax paid by the consumer is $______ and the tax paid by the producer is $_____ of the tax.
D. What is the total tax revenue received by the government? $________