Suppose That the Supply and Demand Equations for a Certain

question 98

Essay

Suppose that the supply and demand equations for a certain product are
and
respectively,where p represents the price per unit in dollars and q represents the number of units per time period.
(a)Find the equilibrium price algebraically.
(b)Find the equilibrium price when a tax of 50 cents per unit is imposed.

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Definitions:

Pure Monopoly

A market framework where there is only one provider offering a distinctive product without any closely resembling alternatives.

Increasing Profits

A financial strategy or outcome where a business experiences a growth in net earnings over time.

Lowering Price

A strategic move where a seller reduces the price of goods or services to attract more customers or beat competitors.

Monopolist

A market participant that is the sole seller of a good or service, thereby controlling the market.