Suppose the market for grass seed can be expressed as
Demand: Q^D = 200 - 5p
Supply: Q^S = 40 + 5p
If the government collects a $5 specific tax from sellers,how much will the quantity demanded change from the amount demanded before the tax? What price will consumers pay after the tax? What price will sellers receive after the tax? What is the tax revenue?

Question

Quizplus · Accepted Answer

The Answer of Suppose the market for grass seed can be expressed as Demand: Q^D = 200 - 5p Supply: Q^S = 40 + 5p If the government collects a $5 specific tax from sellers,how much will the quantity demanded change from the amount demanded before the tax? What price will consumers pay after the tax? What price will sellers receive after the tax? What is the tax revenue?

Suppose the Market for Grass Seed Can Be Expressed as