Online Textbook-Chapter 2, Section E
To calculate the new equilibrium after imposing a $5 tax, set the new demand curve equal to the supply curve. (Remember to solve for the equation of the new demand curve first.) Equation of new demand curve: P = 10 – Q. 10 – Q = 3 + Q. Q = 3.5. Plug Q into either the demand or supply curve equation to solve for Ps (price sellers will pay) P ... ................
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