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Continue to consider the market in which the supply and demand curves are described by the following information:
Vertical intercept for the supply curve: -120 (NEGATIVE 120)
Vertical intercept for the demand curve: 200
P*: $80
Q*: 600
A tax is applied to the market in the amount of $32 per unit. With the tax, sellers now receive a price of $60 per unit sold. You will have to calculate the price paid by buyers - but you have enough information to do so. With the tax, 540 units are sold.
Carefully following all numeric instructions, calculate total market surplus before (without) the tax applied.
Price Paid by buyers with tax-92
Market tax revenue- 17280
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