Question Consider a market in which the demand curve is given by Q = 28 - 2P. The supply curve is given by P = 2. The government is considering imposing a tax. If the government wants to maximize the tax revenue collected from this market, the optimal tax rate would be [Answer] per unit. (In decimal numbers, with two decimal places, please.)

X8KQZJ The Asker · Economics

Consider a market in which the demand curve is given by Q = 28 - 2P. The supply curve is given by P = 2. The government is considering imposing a tax. If the government wants to maximize the tax revenue collected from this market, the optimal tax rate would be [Answer] per unit. (In decimal numbers, with two decimal places, please.)

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LR3YBY

Given: Demand curve = 28- 2*P Supply curve = P= 2 According to laffer's theory of tax maximization Tax will be maximized when both demand and supply curve becomes equ ... See the full answer