00:01
Let's go over this question.
00:04
We want the equilibrium price and quantity.
00:09
So we can see where these curves intersect.
00:11
The price is 10 and the quantity is also 10.
00:17
There's a tax of 3 per unit.
00:21
Let's assume it's on the supply side.
00:24
The supply curve shifts upward by 3.
00:29
The buyer's price is then going to be at 14 and drawing a line down.
00:43
The seller's price is at 6.
00:53
So our new market quantity is now 6.
01:01
So the previous consumer surplus is here.
01:11
The demand curve crosses the axis at 20.
01:15
This is a 6.
01:21
The height is 10 and the base is also 10...