S(P^-)= 50 + P^-
D(P^+)=370-3p^+
Sales tax= 20 %
Calculate the equilibrium buyers' and sellers' price with no sales tax, and then with the 20% tax.
S(P^-)= 50 + P^-
D(P^+)=370-3p^+
Sales tax= 20 %
Calculate the equilibrium buyers' and sellers' price with no sales tax, and then with the 20% tax.
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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 _________________.
a. |
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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