What price do consumers pay before the tax is imposed

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Reference no: EM131777316

Question: The market for grass seed can be expressed as follows:

Demand: Q^D = 200 - 5P

Supply: Q^S = 40 + 5P

If the government collects a exist5 specific tax from sellers:

1. What price do consumers pay before the tax is imposed?

2. What price do consumers pay after the tax is imposed?

3. What price do sellers receive after the tax?

4. What is the percent of the tax borne by buyers?

5. What is tax revenue in this case?

Reference no: EM131777316

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