The demand for gizmos is given by Q=2,000-100P and the supply of gizmos is given by...

The demand for gizmos is given by Q=2,000-100P and the supply of gizmos is given by Q=-100 + 200P. There is a $2/unit sales tax on gizmos. Who pays the tax? Who bears the economic burden of the tax? On a supply and demand graph, label the price that buyers pay, the price sellers receive, the tax incidence borne by buyers and sellers, and the deadweight loss associated with the tax.

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Rahul Sunny answered 2 years ago

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