The demand for ice cream is given by Q D = 20 – 2P, measured in
gallons of ice cream. The
supply of ice cream is given by Q S = 4P – 10. Suppose that the
government legislates a $1 tax on
a gallon of ice cream, to be collected from the seller.
a) As a result of the tax, what is the price paid by buyers?
b) What is the price received by sellers?
Hint: You need to...