Consider a perfectly competitive market where the demand for the good is given by Q=714-3p, where Q denotes the quantity demanded at price p. On the supply side, the industry supply function is given by Q=-7+8p. The government imposes a per-unit tax on consumers equal to t=8.714
Derive the market equilibrium in the presence of this tax. Determine the share of the tax paid by consumers and enter it below
{:[xs=-7+8p],[Q=-7+8P],[=-7+8xx65.45],[=-7+523.6],[Q=516.6]:}" Now, "t=8.714{:[=714-3(P+8.714)],[=714-3P-26.14],[=-3P+687.86]:}{:[quada_(D)=Q_(S)],[-3P+687.86=-7+8P],[694.86=11 P],[P_(5)=(694.86)/(11)63.16quadP_(S)=63.16] ... See the full answer