The market demand and supply functions for widgets are as follows: qa - 12 - P 98 2p (a) Calculate the equilibrium price

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The Market Demand And Supply Functions For Widgets Are As Follows Qa 12 P 98 2p A Calculate The Equilibrium Price 1 (173.01 KiB) Viewed 33 times

The market demand and supply functions for widgets are as follows: qa - 12 - P 98 2p (a) Calculate the equilibrium price and quantity. (b) Suppose the government imposes a per unit tax of Re 1 on sellers. How is the economic burden of the tax distributed across buyers and sellers? (C) Calculate the deadweight loss of the tax. (d) Consider a general tax rate t per unit, to be paid by sellers. Find the value of t that maximizes tax revenue for the government.