Determine what is the share of the tax paid by the seller

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Reference no: EM13221694

Qs= 3p Qd= 100-2p

a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax? What will be the price received by the seller? What quantity is sold? Show your calculation.

b) What is the share of the tax paid by the seller? What is the share of the buyer? Are they the same? If so, why? If not, why not? Explain your answer.

c) What is the deadweight loss caused by this taxation?

Reference no: EM13221694

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