3. In the market for Samsung Galaxy S22, the demand function is Q = 2002P, while the supply function is Q = 2P-20, where P denotes the price, and Q the quantity of Samsung Galaxy S22. a. Calculate the equilibrium price and quantity! b. To reduce addiction to social media, the government imposes a specific tax of $5 on sellers. Calculate the new equilibrium price and quantity c. Now suppose the tax of $5 is imposed on buyers rather than sellers. Find the new equilibrium price and quantity.

3. In the market for Samsung Galaxy S22, the demand function is Q = 2002P, while the supply function is Q = 2P-20, where P denotes the price, and Q the quantity of Samsung Galaxy S22. a. Calculate the equilibrium price and quantity! b. To reduce addiction to social media, the government imposes a specific tax of $5 on sellers. Calculate the new equilibrium price and quantity c. Now suppose the tax of $5 is imposed on buyers rather than sellers. Find the new equilibrium price and quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. In the market for Samsung Galaxy S22, the demand function is Q =
200 - 2P, while the supply function is Q = 2P - 20, where P denotes the
price, and Q the quantity of Samsung Galaxy S22.
a. Calculate the equilibrium price and quantity!
b. To reduce addiction to social media, the government imposes a
specific tax of $5 on sellers. Calculate the new equilibrium price and
quantity
c. Now suppose the tax of $5 is imposed on buyers rather than sellers.
Find the new equilibrium price and quantity.

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