2. Suppose you are given the following information: Qd = 400 - P where Q' is the quantity supplied, Qd is the quantity demanded and P is price. From this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P+T) where Tis taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers). Q³ = 200 + 3P

2. Suppose you are given the following information: Qd = 400 - P where Q' is the quantity supplied, Qd is the quantity demanded and P is price. From this information compute equilibrium price and quantity. Now suppose that a tax is placed on buyers so that Qd = 400 - (2P+T) where Tis taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers). Q³ = 200 + 3P

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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