how-does-a-6-tax-on-suppliers-affect-the-equilibrium-price-and-quantity-if-the-d

Question

How does a $6 tax on suppliers affect the equilibrium price and quantity if the demand equation is Qd = 45 - 5P and the supply equation is Qs = 3P - 9?

Accepted Answer

Equilibrium price increases, quantity decreases

Answer

Equilibrium price and quantity both decrease

Answer

Equilibrium price decreases, quantity increases

Answer

Equilibrium price and quantity both increase

How does a \$6 tax on suppliers affect the equilibrium price and quantity if the demand equation is Qd = 45 - 5P and the supply equation is Qs = 3P - 9?