Te supply and demand equations of a good are given by


The supply and demand equations of a good are given by :

Qs=-8+P and Qd= (80/3)-(1/3)P

respectively. P is measured in dollars. Suppose the government decides to impose a constant per unit tax of $t on the supplier.

1) Find the equilibrium in terms of t.

2) Using the expression in part 1 find the value of T that maximizes the government's total tax revenue.

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Econometrics: Te supply and demand equations of a good are given by
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