Quantitative Analysis of Taxes

6. Introduction to Taxes and Subsidies / Quantitative Analysis of Taxes / Problem 6

Problem 6

If the original supply equation is Qs = 6P - 18 and a \$4 tax is imposed on suppliers, derive the new supply equation.

Qs = 6(P - 4) - 18

Qs = 6P - 22

Qs = 6P - 14

Qs = 6(P + 4) - 18