Economics – Public Finance?

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One Response to Economics – Public Finance?

  1.   Jurij-EU   Ω² says:

    Amber

    Pd=Ps+Tax=Ps+2
    Ps=Pd-Tax=Pd-2

    Qd=2’000-200Pd
    Qs=200Ps=200(Pd-2) = 200Pd-400

    Qd=Qs
    2’000-200Pd=200Pd-400
    2’400=400Pd
    Pd=2’400/400=6
    Ps=6-2=4
    Qs=Qd=200Ps= 200×4=800

    Demand curve doesn’t changes actually – there vertical spread emerges between demand and supply, and this spread size is tax.

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