The market for smart phones is characterized by the following supply and demand functions:
Supply: P=2Qs Demand： P=42-Qd
Where P denotes price, Qs denotes quantity supplied, Qd denotes quantity demanded.
The government levies a tax of GBP 9 on each smart phone, collected from sellers. What fraction of the tax does the seller bear and what fraction does the buyer bear?
0 Answers | Be the first to answer
We’ve answered 287,753 questions. We can answer yours, too.Ask a question