What is the price received by producers

Reference no: EM132126132

Question: Consider a mineral that is in fixed supply, Q^s =4. The demand for the mineral is given by Q^D= 10- 2p,where pis the price per pound, and Q^Dis the quantity demanded. The government imposes a tax of $2 per pound on the consumer,

(a) What is the price paid by the consumer before the tax is imposed, and in the post-tax equilibrium?

(b) What is the price received by producers?

Reference no: EM132126132

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