4. Assume that the demand function for a commodity is given by 2. and that the supply function is given by 2, =1+0.05P where P is the price, Q, is the quantity demanded and Q, is the quantity supplied. Suppose the government levies a tax of t Ghana Cedis per unit sold so that the producer receives (p-t) Ghana Cedis if the consumer pays p Ghana Cedis per unit. If the market is in equilibrium and the tax is increased, how will the price, quantity and tax revenue change once equilibrium has been attained?

4. Assume that the demand function for a commodity is given by 2. and that the supply function is given by 2, =1+0.05P where P is the price, Q, is the quantity demanded and Q, is the quantity supplied. Suppose the government levies a tax of t Ghana Cedis per unit sold so that the producer receives (p-t) Ghana Cedis if the consumer pays p Ghana Cedis per unit. If the market is in equilibrium and the tax is increased, how will the price, quantity and tax revenue change once equilibrium has been attained?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11. that a market is described by the . Solve for the equilibrium price and the following supply and demand equations: Q$ = 2P QD = 300 – P %3D a. equilibrium quantity. h Suppose that a tax of T is placed on buyers so the new demand equation is QD = 300 – (P + T). %3D
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"""eco-nomics""
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6
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Plz solve all parts, i vll definitely upvote
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Solve the second part