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In: Economics

The demand for milk is represented by: P = -0.5Qd + 8.1 The supply of milk...

The demand for milk is represented by: P = -0.5Qd + 8.1

The supply of milk is represented by: P = 1.2Qs + 1.6

Quantities are in millions of gallons per week.

Now suppose that the government levies a $ 0.21 excise tax per gallon on the sellers. Calculate the part of the tax borne by the consumers in this market and enter using 2 decimal places.

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Expert Solution

Rahul Sunny answered 1 year ago
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