The demand and supply lines in a market are as


The demand and supply lines in a market are as follows:

Demand: P = 21 - 2Q

Supply:   P = 3+Q ,

where P is the price in dollars (vertical axis) and Q is the quantity in pounds (horizontal axis).

(a) Give a graph and solve for equilibrium price and quantity.

(b) Now suppose a tax is imposed so that the price paid by the demander is $13 and the price received by the supplier is $7. Calculate the tax revenue.

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Business Economics: The demand and supply lines in a market are as
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