Math Problem Statement
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Solution
To solve this problem, let's proceed by analyzing the demand and supply functions and determining the tax revenue.
Given Information
- Demand Function:
- Supply Function:
- Tax: The government imposes a tax of Rp 3 per unit.
Steps to Solve
1. Simplify the Demand and Supply Functions
- Rewrite the demand function to express in terms of :
- Rewrite the supply function to express in terms of :
2. Determine Equilibrium Without Tax
- Set the demand and supply equations equal to each other to find the equilibrium price and quantity: Substitute back into one of the equations to find :
- Therefore, the equilibrium price without tax is and equilibrium quantity is .
3. Determine New Equilibrium with Tax
- When a tax of Rp 3 is imposed, the supply function shifts vertically upwards by 3 units. The new supply price becomes .
- The adjusted supply equation is: Rewrite this
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Math Problem Analysis
Mathematical Concepts
Algebra
Linear Equations
Equilibrium Analysis
Tax Revenue
Formulas
Demand function: 2P + 2Q = 30
Supply function: P - 3 = (1/2)Q
Equilibrium condition: Demand = Supply
Total tax revenue = Tax per unit × Quantity demanded
Theorems
Equilibrium Analysis
Tax Shift on Supply Curve
Suitable Grade Level
Undergraduate Economics or Advanced High School Mathematics
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