Answer:
The new equilibrium price is $6.43 and the quantity is 374.28
The tax borne by consumers is 0.72
The tax borne by producers is 0.03
Explanation:
The old equilibrium price of the bubble tea was $5.71 while the new price of the bubble tea is $6.43. The new price includes the tax effect which is paid by the consumers. The difference in the two equilibrium prices is the tax which is borne by consumers.
