Paytonics Inc., a microchip manufacturing company, is hiring for the position of marketing manager for its new division. Patrick
1 answer:
You might be interested in
Answer:
- The Demand is given by
- The supply curve is by
Consumers will face a price of 33.29 and the equilibrium quantity will be 43.42.
These results illustrate that as a consequence of the tax, the price faced by consumers will be higher, quantity sold be lower, and producers will receive less for their product sale.
Explanation:
- The Demand is given by
- The supply curve is by
In the absence of taxes and
.
An ad-valorem tax generates now that
So the new equilibrium is
Replacing in the demand equation we get the equilibrium quantity