Question

"For the next three questions, assume there is $20 per unit tax levied on the consumers of guitars. What price will buyers pay after the tax is imposed"

Answer 1

Answer:

The consumer will pay $200 after the tax is imposed.

Explanation:

if the tax of $20 per unit is levied on the consumers of guitars, thenthe demand: P = 300 - 0.5*Q

180 + 20 = 300 - 0.5*Q

Therefore, The consumer will pay $200 after the tax is imposed.