# Suppose the demand and supply of a good

Question # 00619735 Posted By: dr.tony Updated on: 11/17/2017 01:34 PM Due on: 11/17/2017
Subject Economics Topic Microeconomics Tutorials:
Question

Suppose the demand and supply of a good are given below:

Qd = 100/3 - P/3

Qs = -5 + P/2

1 Plot the demand and supply curve on the P (vertical)-Q (horizontal)space

2 Calculate the CS, PS and TS.

3 Now suppose a tax of \$10/unit is imposed on buyers.

4 Plot the new equilibrium with tax

5 Find the new equilibrium prices and quantity

6 Calculate the CS, PS, TS, gov's tax, and DWL.

7 Calculate the incidence of the tax.

8 Calculate the elasticity of demand and supply to price changes (from before to after the tax is imposed)

Tutorials for this Question
1. ## Solution: Suppose the demand and supply of a good

Tutorial # 00618383 Posted By: dr.tony Posted on: 11/17/2017 01:35 PM
Puchased By: 2
Tutorial Preview
The solution of Suppose the demand and supply of a good...
Attachments
Suppose_the_demand_and_supply_of_a_good.ZIP (18.96 KB)

Great! We have found the solution of this question!