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hello in this video well do a supply and demand tax problem that involves using a table here is our market we got the price we got the quantity demanded by buyers and the quantity supplied by sellers without a tax what is the equilibrium price and quantity we want to find where the quantity demanded equals the quantity supplied and that occurs at 50. so that is going to be our equilibrium quantity and the corresponding price is the equilibrium price now lets assume theres a four dollar per unit tax placed in this market what is the effective price paid by buyers and the effective price paid by sellers this four dollar tax creates a four dollar gap between what buyers pay and sellers receive at this four dollar gap the quantity demanded equals the quantity supplied so as we learned in this market the equilibrium price is five dollars and the equilibrium quantity is 50 without a tax but with the tax there is going to be a gap between what buyers pay in general taxes cost buyers to pay
