Posted by Dina on .
The market for Good X can be depicted with the following demand and supply equations:
Demand: P = 50 – 1/2Q
Supply: P = 1/3Q
Where P is price per unit and Q represents quantity in units. Policy makers plan on imposing a $1 per unit tax on this good.
Question: ( Market for Good X) If this tax is imposed, the price of Good X will increase by:
I don't how to solve?