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:
Q_s = 100 + 3P
Q_d = 400 - 2P
From this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that
Q_d = 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?

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Definitions:

Nucleophilic Acyl Substitution

A type of organic reaction where a nucleophile replaces a leaving group in an acyl compound, forming a new covalent bond.

Esters

Organic compounds derived from an acid where at least one -OH (hydroxyl) group is replaced by an -O- (alkoxy) group, known for their fruity smells.

Amides

Organic compounds containing a carbonyl group linked to a nitrogen atom from an amine, fundamental in the structure of proteins.

Organic Product

A chemical compound of carbon, often produced or derived from living organisms, excluding compounds like carbonates, carbides, and cyanides.