The demand and supply curves for a certain product are given in terms of price p

Question

The demand and supply curves for a certain product are given in terms of price p by:

D(p) = 2500 - 20p and S(p)= 10p-500

a. Find the Equilibrium price and quantity

b. A specific tax is a fixed amount per unit of a product sold regardless of the selling price. If a specific tax of $6 per unit is imposed upon suppliers, find the new equilbrium price and quantity

c. How much of the $6 tax is paid by consumers and how much is paid by producers?

d. what is the total tax revenue received by the government?

Explanation / Answer

http://imgur.com/E9r0fXS

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http://imgur.com/R55sIoW

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