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Demand function for coffee

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Reference no: EM132434411

Suppose the demand function for coffee is given by: QD= 100 - 5P. The supply function for coffee is given by: QS= P-2. If the government imposes a $6 per unit tax on the suppliers of coffee determine the following values and functions...

b. Quantity supplied and demanded with the tax: __________ 10 units

c. Price Consumers pay (tax included): __________ $18.00

d. Government Tax Revenue: ____________ $60.00

e. Deadweight loss from Tax: _______________ $15.00

Answers are given, please explain how to solve and show all work. (no graph work can be shown)

Reference no: EM132434411

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