Determine the change in equilibrium price and quantity


Let the supply curve be P = Q and demand curve be P = 12 Q. (a) If a tax of 1 per unit is imposed on buyers, determine the change in equilibrium price and quantity, producer surplus (PS) and consumer surplus (CS) and deadweight loss (DWL)? Identify the tax revenue. Demonstrate the CS, PS, DWL, and Taxes on a diagram. If a tax of 1 per unit is imposed on sellers instead, calculate the result?

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Macroeconomics: Determine the change in equilibrium price and quantity
Reference No:- TGS0873131

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