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Economics

The demand and supply expressions for caviar are as follows:

Qd=3,200-25p
Qs=-800+15p

where p is the dollar price of a can of caviar and Q is the number of cans of caviar

Suppose the government wants to discourage the consumption of caviar and so imposes an excise tax of $20 per can of caviar on the buyer.

For the following problems provide the answer to two decimal places as appropriate.

a.) what is the price paid by consumers
b.) What is the price received by suppliers

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M963897

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