View the step-by-step solution to:


Suppose the demand for a product is given by P = 100 - 2Q. Also, the supply is given by P = 20 + 6Q. If an $8

per-unit excise tax is levied on the buyers of a good, consumer surplus is equal to

Top Answer

100 - 2Q = 20 + 6Q 80 = 8Q Q = 8 Plug in 8 for Q in one of the equations to get P. 100 - 2(8) = 84 The... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question