Consider the following demand and supply functions. Demand: D(p) = q = 169 – 9p and Supply: S(p) = q = 45 + 11p a.) Assume there are no taxes imposed. Find the equilibrium price and quantity. Equilibrium Price (Round your answer to the nearest cent) 6.2 Equilibrium Quantity (Round your answer toythe nearest whole number) 113

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Chapter1: Making Economics Decisions
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Consider the following demand and supply functions.
Demand: D(p)
= q = 169 – 9p and Supply: S(p) = q = 45 + 11p
a.) Assume there are no taxes imposed. Find the equilibrium price and quantity.
Equilibrium Price (Round your answer to the nearest cent) 6.2
Equilibrium Quantity (Round your answer
tothe
nearest whole number) 113
b.) Assume there is a 15% tax on the producer, find the new equilibrium price and quantity.
New equilibrium price (Round your answer to the nearest cent)
Equilibrium Quantity (Round your answer to the nearest whole number)
c.) What portion of the tax is paid by the consumer? (Round to the nearest cent)
d.) What portion of the tax is paid by the producer? (Round to the nearest cent)
e.) What is the total tax is paid to the government? (Round to the nearest cent)
Submit answer
Transcribed Image Text:Consider the following demand and supply functions. Demand: D(p) = q = 169 – 9p and Supply: S(p) = q = 45 + 11p a.) Assume there are no taxes imposed. Find the equilibrium price and quantity. Equilibrium Price (Round your answer to the nearest cent) 6.2 Equilibrium Quantity (Round your answer tothe nearest whole number) 113 b.) Assume there is a 15% tax on the producer, find the new equilibrium price and quantity. New equilibrium price (Round your answer to the nearest cent) Equilibrium Quantity (Round your answer to the nearest whole number) c.) What portion of the tax is paid by the consumer? (Round to the nearest cent) d.) What portion of the tax is paid by the producer? (Round to the nearest cent) e.) What is the total tax is paid to the government? (Round to the nearest cent) Submit answer
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