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KonstantinChe [14]
3 years ago
14

A supply curve has equation q equals 4 p minus 24 ⁢ comma where p is price in dollars. A dollar-sign 3 tax is imposed on supplie

rs. Find the equation of the new supply curve.
Business
1 answer:
emmasim [6.3K]3 years ago
5 0

Answer: New supply equation = Qs= 4P - 36

Explanation: A supply equation shows us the mathematical relationship between quantity supplied and the price of the good. Since price and supply are positively related, P must carry a positive sign in the supply equation.

Given, supply is Qs=4P - 24

P is the price paid by consumers in the market.

When a $3 tax is levied , price sellers receive becomes P-T = P - 3

So, the new supply equation will be

Qs= 4 (P-3) - 24 Qs= 4P - 12 - 24  Qs= 4P - 36

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