Question

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.
q =

Answer 1

Answer: $q=5p-32$

Step-by-step explanation:

The equation of the old supply curve is:

$q = 5p - 22$

 Where $p$ is the price in dollars.

According to the exercie,a $2 tax is imposed on suppliers; this means that $p$ changes for the suppliers. This changed can be expresed as:

$p-2$  .

Therefore,in order to find the equation of the new supply curve. you must substitute $p-2$ into the equation $q = 5p - 22$ .

Then:

$q = 5(p-2) -22$

Simplifying, you get:

$q = 5p-10 -22\\\\q=5p-32$