omework Ch 08 Due Today at 1159 PM CST The following graph r

omework (Ch 08) Due Today at 11:59 PM CST The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) Indicates the pre-tax equllibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) Indicate the after-tax scenario. Demand Supply 30.00 22.50 QUANTITY (Pinckneys)

Solution

Question 1). Answer :-

Question 2). Answer :-

Result	Value
Price consumers pay after tax	$ 37.50
Per unit tax	$ 15 (37.50 - 22.50)
Equilibrium quantity after tax	2.50 (Decrease in equilibrium quantity from 4 to 2.5)