ECONOMICS 1010 - Suppose the demand curve for a good
Question # 00541124
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Updated on: 06/06/2017 03:25 AM Due on: 06/06/2017
1. Suppose the demand curve for a good is given by the equation P = 200 - 1/4
Q and the supply curve is given by the equation P = 50 + 1/2 Q, where P
represents the price of the good (measured in dollars per unit) and Q
represents the quantity of the good (measured in units per week).
(a) (b) Suppose the government imposes a sales tax of $9 per unit on this good.
Find the new formula for the demand curve, the change in equilibrium
quantity, the post-tax price received by suppliers, and the post-tax price
paid by buyers. Illustrate graphically as well.
Suppose quantity demanded for the good rises by 10 units at every
possible price while at the same time quantity supplied rises by 5 units at
every possible price. Find the new equilibrium price and quantity in this
market.
Q and the supply curve is given by the equation P = 50 + 1/2 Q, where P
represents the price of the good (measured in dollars per unit) and Q
represents the quantity of the good (measured in units per week).
(a) (b) Suppose the government imposes a sales tax of $9 per unit on this good.
Find the new formula for the demand curve, the change in equilibrium
quantity, the post-tax price received by suppliers, and the post-tax price
paid by buyers. Illustrate graphically as well.
Suppose quantity demanded for the good rises by 10 units at every
possible price while at the same time quantity supplied rises by 5 units at
every possible price. Find the new equilibrium price and quantity in this
market.
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Solution: ECONOMICS 1010 - Suppose the demand curve for a good