SOLUTION: A supply curve has equation q=5p-22, where p is price in dollars. A $2 tax is imposed on suppliers. Find the equation of the new supply curve.

SOLUTION: A supply curve has equation q=5p-22, where p is price in dollars. A $2 tax is imposed on suppliers. Find the equation of the new supply curve.

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Question 1014900: A supply curve has equation q=5p-22,
where p is price in dollars. A $2 tax is imposed on suppliers.
Find the equation of the new supply curve.
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
Assuming the cost of tax is passed on to the consumers, the new price would be p+2, hence the new supply curve would be q = 5(p+2)-22, or q = 5p - 12 after simplifying.
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