contestada

A perfectly competitive market has the following demand and supply curves:
QD = 100 -10P
QS = 40P
The government imposes a $5 tax on each unit sold. Compute the government tax revenue from this market. Now suppose that the government imposes a tax T on each unit sold. Compute the government tax revenue from this market, as a function of tax T.
Please explain with graphs.

Q&A Education