Examlex

Solved

Suppose That Instead of a Supply-Demand Diagram, You Are Given

question 26

Essay

Suppose that instead of a supply-demand diagram, you are given the following information:
Qs = 100 + 3P
Qd = 400 - 2P
From this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that
Qd = 400 - 2(P + T).
If T = 15, solve for the new equilibrium price and quantity. (Note: P is the price received by sellers and P + T is the price paid by buyers.) Compare these answers for equilibrium price and quantity with your first answers. What does this show you?


Definitions:

Adaptation

The process of modifying to meet new, changing, or different conditions.

Canadian Institutes of Health Research (CIHR)

Canada's federal funding agency for health research, supporting the creation of new knowledge and its application to improve health, health care, and economic outcomes.

Organisation for Economic Co-operation and Development

An international organization that works to build better policies for better lives, focusing on economic progress and world trade.

Integrated Management Program

A coordinated approach to planning, executing, and evaluating projects or operations across multiple sectors or disciplines.

Related Questions