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`

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`