So the question asks me to find the % tax revenue but I can't seem to get the right answer, can anyone help?
The demand and supply functions for pens with a tax imposed on the buyers is given by:
$Q^D = 92 – 4 (Ps + T)$
$Q^S = -168 +12 (Ps)$
$Q = Q^D = Q^S$
The price to the buyer was initially \$16 and \$1 tax. However, the government decided to raise the tax to \$2.00 for this amount. This caused a drop in the quantity sold from the initial $Q=24.$
Assume $T = \$2$