Show mathematically the effects on the equilibrium price and quantity of corn from a per unit of tax of t=$2 collected from suppliers, where Qd= 20-2p and Qs= 3p-20. Determine the after tax equilibrium price and quantity. Also, draw a graph to show the new price and quantity (showing also how the tax shifts the supply curve). How much will be the burden of tax on consumer and suppliers? What is the tax revenue? What is the DWL of the tax?

Show mathematically the effects on the equilibrium price and quantity of corn from a per unit of tax of t=$2 collected from suppliers, where Qd= 20-2p and Qs= 3p-20. Determine the after tax equilibrium price and quantity. Also, draw a graph to show the new price and quantity (showing also how the tax shifts the supply curve). How much will be the burden of tax on consumer and suppliers? What is the tax revenue? What is the DWL of the tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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