Examlex

Solved

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

question 121

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:

Photocopier Maintenance

The routine checking and servicing of photocopying machines to ensure their proper functioning and longevity.

Business Products

Goods and services that are purchased for the purpose of being used in the production of other goods and services, to support daily operations or for resale.

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, commonly referred to as birth control pills, which contain hormones to inhibit ovulation.

Hormonal Methods

involve the use of hormones to prevent pregnancy and can include birth control pills, patches, injections, and implants.

Related Questions