Given that demand for a good X is equal to $q_D=393-2p$ and market supply is $q_S=p/4-12$. Find equilibrium price and quantity, consumer and producer surplus and draw a diagram illustrating the situation. Given that:
a) $T=20\% \pi$, total profit is taxed
b) $T=200$ tax does not depend on volume and value of goods sold
will it be simply $$393-2p=p/4-12-200$$ ? Obviously i need to find $p$.
Obviously i have calculated the equilibrium price and quantity before taxation that is $p=180,q=33$. How to find situation after taxation in those two cases?
$$393 − 2p = \frac p 4 − 12 − 200 - 0.2 \cdot \text{profit} .$$