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Hello im having trouble with my economics paper. especially problem 1.
The demand and supply function of hockey sticks is given by
Qd = 286 – 20P
Qs = 88 + 40P
In order to raise revenue to finance minor hockey so that Cnada can continue its gold medal streak at the Olympics, the federal government decides to impost a tax of $2 per hockey stick sold, to be paid by the buyers of hockey sticks.
1. Determine the equilbrium of price and quantity of hockey sticks both before and after the tax. How is the burden of tax shared between buyers and seller?
2. how many hockey sticks would be sold before the tax is imposted? After the tax.
3. Grapth the supply and demand curves for hockey sticks both before and after the tax.
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