Suppose that the demand and supply functions for a good are given as follows: Demand: 0-1080-7P Q-120+3P Supply: Suppose now that government imposes $60 tax per unit of output on sellers. What is the tax revenue for the government at the equilibrium? 7320 6840

Principles of Economics (MindTap Course List)
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ISBN:9781305585126
Author:N. Gregory Mankiw
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Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 4CQQ
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Suppose that the demand and supply functions for a good are given as follows:
Demand: Q-1080-7P
Supply: Q³ =-120+3P
Suppose now that government imposes $60 tax per unit of output on sellers. What is the tax revenue for
the goverment at the equilibrium?
7320
6840
7200
6000
Transcribed Image Text:Question Suppose that the demand and supply functions for a good are given as follows: Demand: Q-1080-7P Supply: Q³ =-120+3P Suppose now that government imposes $60 tax per unit of output on sellers. What is the tax revenue for the goverment at the equilibrium? 7320 6840 7200 6000
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