Problem
The supply of Henry's hamburgers is given by P = 2+0.5Q; demand is given by Q = 20.
(a) Illustrate and compute the market equilibrium.
(b) A specific tax of $3 per unit is subsequently imposed and that shifts the supply curve to P = 5+0.5Q. Solve for the equilibrium price and quantity after the tax.
(c) Who bears the burden of the tax in parts (a) and (b)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.