Equation: Qd (p) = 18-p and Qs (p) = 2p Suppose the goverment imposes a $3 per-unit tax (T =3) on each unit of the good being produced. That is, the firms have to pay $3 to the government each time they produce and sell a unit of output . a.) What will be the new equilibrium quantity?

Equation: Qd (p) = 18-p and Qs (p) = 2p Suppose the goverment imposes a $3 per-unit tax (T =3) on each unit of the good being produced. That is, the firms have to pay $3 to the government each time they produce and sell a unit of output . a.) What will be the new equilibrium quantity?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter22: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 4CQ

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Equation: Q^d(p) = 18-p and Q^s(p) = 2p

Suppose the goverment imposes a $3 per-unit tax (T =3) on each unit of the good being produced. That is, the firms have to pay $3 to the government each time they produce and sell a unit of output .

a.) What will be the new equilibrium quantity?

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