(Answered) Qxd 14 - 12 pxnbspnbspnbspandnbspqxs 14pxnbsp-

Economics

QXd = 14 - (1/2) P_X and QXS = (1/4)P_X - 1

a. Determine the equilibrium price and quantity. Show the equilibrium graphically.

b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.

c. How much tax revenue does the government earn with the $12 tax?

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Business Economics, Economics

Category:- Business Economics
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