Suppose demand and supply are given by:
Q(d)=14-1/2Px and Q(s) 1/4Px-1
a. Determine the equilibrium price and quantity. Show the equilibrium graphically.
b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.
c. How many tax revenue does the government earn with the $12 tax?