How much will the government receive in tax revenue

Reference no: EM13690381

Suppose the demand curve for pizza can be represented by the equation Qd=20-2p where Qd is the Quantity demanded and P the price. The supply curve is represented by the equation Qs=P-1 where Qs is the quantity supplied and P the price...

Presume the government imposes a $3.00 tax on the consumers.

1. How much more will consumers pay for prize?

2. What is the new quantity of pizza sold?

3. How much will the government receive in tax revenue?

Reference no: EM13690381

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