Using the Equations Shown Below,answer the Following Questions

question 117

Essay

Using the equations shown below,answer the following questions.
Q_D = 38 - 3P
Q_S = -2 + P
a.What is the equilibrium price and quantity in this market
b.Assuming a tax of $2 is imposed on the seller side,what is the equilibrium price and quantity after the tax
c.How much of the tax will the buyers pay
d.How much of the tax will the sellers pay
e.What is the effective price the sellers receive

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ranked.

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.