Suppose that a market is described by the following supply and demand equations: Qs=2P Qd=300-P
a. Solve for the original equilibrium price and the original equilibrium quantity.
b. Suppose that tax of $3.00is placed on buyers, so the new demand equation is Qd=300-(P+ 3)
1-Solve for the new equilibrium price and Qty.
2-Solve for the seller’s price. What happens to the price the sellers received?
3-Solve for the buyers price. What happens to the price paid by the buyers?
4-Solve for the qty sold after tax. What happens to the quantity sold after tax?
c. How much tax revenue is generated by the government
d. calculate the deadweight loss?

Question

Suppose that a market is described by the following supply and demand equations: Qs=2P Qd=300-P 
a. Solve for the original equilibrium price and the original equilibrium quantity. 
b. Suppose that tax of $3.00is placed on buyers, so the new demand equation is Qd=300-(P+ 3) 
1-Solve for the new equilibrium price and Qty.
 2-Solve for the seller’s price. What happens to the price the sellers received? 
3-Solve for the buyers price. What happens to the price paid by the buyers? 
4-Solve for the qty sold after tax. What happens to the quantity sold after tax?
 c. How much tax revenue is generated by the government
d. calculate the deadweight loss?