23 Feb

The supply and demand for paper are described by the following equations demand; Qd = 400,000-3000p supply; Qs = 5000p. Because of the pollution associated with paper production government levied per unit $20 tax on each of the paper. How does the unit tax affect the annual output of paper and its price? Calculate the excess burden of tax if the gov decides to raise the per unit tax with proportional tax?

Yusra Anees
23 Feb

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