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Elucidate how much do dairy farmers receive per gallon

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Reference no: EM1351854

Qd= 2400-500p Qs=6000-1000p

Suppose $1 is imposed per gallon of milk tax on dairy farmers
1. What is the effect of the taz on the supply equation? the demand equation?
2. What is the new equilibrium price and quantity?
3. Elucidate how much do dairy farmers receive per gallon of milk after the tax? how much do demanders pay?

 

Reference no: EM1351854

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