Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers? pls explain by drawing a diagram

Principles of Economics 2e
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Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
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 Suppose the demand curve for butter is Q = 50 − 3P and the supply curve is
Q = 2P. Suppose the government announces a per-unit tax of 1 on the price
of butter. Tax on butter can be seen as a ’fat tax’. What is the overall effect
of a fat tax on the consumers? pls explain by drawing a diagram

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