Suppose the market for leather jackets is described by the following supply and demand curves: D(p) = 150-p S(p) = 50+3P b. Suppose that a tax T is placed on the consumers, so the demand curve is now D(p) = 150 – (p+T). Solve for the new equilibrium price that consumers pay, the price that sellers receive, and the quantity traded. c. Solve for the tax revenue as a function of tax τ and graph this function. d. Solve for the deadweight loss as a function of tax T and graph this function
