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

question 381

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 - 2P + 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?

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Definitions:

Ciliary Body

A structure in the eye that produces aqueous humor, contributes to intraocular pressure, and plays a role in changing the shape of the lens to focus light.

Suspensory Ligaments

Suspensory ligaments are fibrous tissues that support organs or parts, notably the lens of the eye, maintaining its position and shape.

Lens

A transparent, biconvex structure in the eye that focuses light rays onto the retina, allowing for clear vision at various distances.

Gustatory Receptors

Sensory receptors located on the tongue that detect taste.