What should the per unit tax be to raise the required amount

Reference no: EM133344083

Question: Suppose that the market for cigarettes has the following supply and demand curves: Q^S= P; Q^D= 50 - P, where the quantities are measured in thousands of units.

Suppose that the town council needs to raise $300,000 in revenue and decides to do this by taxing the cigarette market. What should the per unit tax be to raise the required amount of money?

Reference no: EM133344083

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