Final answer:
To determine the equilibrium price and quantity after a tax is imposed, we set the demand and supply equations equal to each other and solve for price (P) and quantity (Q). After applying the tax of $5.00, the equilibrium price is $20.50 and the equilibrium quantity is 72.5 units.
Step-by-step explanation:
Given that the demand is represented by the equation Q = 93 - 1P and the supply is represented by the equation Q = 11 + 3P. If a tax of $5.00 is imposed, we can set the demand and supply equations equal to each other:
93 - 1P = 11 + 3P
Subtracting 3P from both sides and adding 11 to both sides yields -4P = -82. Dividing both sides by -4, we find that P = 20.5. plugging this value into either the demand or supply equation, we can solve for Q:
Q = 93 - 1(20.5) = 93 - 20.5 = 72.5.