Can help me with part b of this problem?
The demand for wine is given by the equation $QD = 500 – 20P$, where $P$ is the price of wine per litre and $QD$ is the quantity of wine demanded in litres. The supply of wine is given by the equation $QS = 30P$.
a) Solve for the equilibrium quantity and price of wine.
The current equilibrium would be $500 - 20P = 30P$. therefore the equilibrium price is $P=$ $100 and equilibrium quantity is 1500.
b) Suppose that a $1 per litre tax is levied on the wine producers. Calculate the new equilibrium quantity and price of wine after tax.
Is the new supply $QS = 30P + 1$? So the new equilibrium can be obtain from $30P+1 = 500-20P$. But I get decimal places? Or is the equilibrium $30P + 1Q$?