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...

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?

 

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