Calculate the Equilbirum buyers and sellers price with no sales tax, and then with 20% sales tax.
assume: S(P^-)=50 + 3P^- D(P^+)=370-3P^+
Calculate the Equilbirum buyers and sellers price with no sales tax, and then with 20% sales tax.
assume: S(P^-)=50 + 3P^- D(P^+)=370-3P^+
Related textbook solutions
Related questions
1-
If the government increases the tax on a good then the price paid by buyers will ______________ and the price sellers receive will _________________.
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increase; increase |
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| b. |
increase; decrease |
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| c. |
decrease; increase |
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d. decrease; decrease ________________________________________________________ 2- It doesn't matter whether a tax is levied on the buyers or sellers of a good because _____________.
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