5. Suppose that instead of a supply-demand diagram, you are given the following
Information:
...
Business, 05.05.2021 06:50, mathisawsome123
5. Suppose that instead of a supply-demand diagram, you are given the following
Information:
Qs - 100 + 3P
Q - 400 - 2P
(1) (2points) compute equilibrium price and quantity. Now suppose that a tax is placed on
buyers so that
Page 19
lp - 400 - (2P+T)
(2) (2points) If T=15, solve for the new equilibrium price and quantity.
(3) (1point) Compare these answers for equilibrium price and quantity with your first
answers. What conclusion can you reach?
I
Answers: 3
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