The market is characterized by Qs = 10p, and Qd = 300 - 20p. Suppose the government imposes a $3 per-unit tax on sellers. What price do buyers pay for the product now that it is being taxed?
A) $8
B) $11
C) $13
D) $17
Answer: (C) $13
Explanation ::
Firs Of All We Have To Calculate Equilibrium Price By Demand function = Supply Function So,
300 - 20p = 10p
300 = 10p + 20p
300 = 30p
So, p = 300/30
P = $10
So If $3 Per Unit tax imposed On Seller so New Price
= $10 + $3
= $13
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