post tax prices

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post tax prices

ahlashi
in a competitive mkt
Qd=200-P
Qs=1/2p-25

there is an imposition of commodity tax of 30 per unit on output.calculate pre and post tax equilibrium output and price


can anyone pls confirm me the post tax prices and quantity ?
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Re: post tax prices

Eco16
Post tax prices Ps=130
Pd=160 Q=40
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Re: post tax prices

ahlashi
im getting ps=140 and pd=170

can you pls  provide a solution
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Re: post tax prices

Eco16
Pd=ps+30
qd=170-ps
equating new dd curve and ss we get the ans.