Consider the market for pork illustrated in the graph. Suppose demand (D') is Q = 225 - 25p and initial supply (S') is Q = 70 + 40p and that a $2.30 tax is charged to producers, shifting the supply curve to s?. Using the pork demand function and the original and after-tax supply functions, derive the initial equilibrium price and the after-tax equilibrium price. (Enter all responses using real numbers rounded to two decimal places) The equilibrium price is initially per kg.
Consider the market for pork illustrated in the graph. Suppose demand (D') is Q = 225 - 25p and initial supply (S') is Q = 70 + 40p and that a $2.30 tax is charged to producers, shifting the supply curve to s?. Using the pork demand function and the original and after-tax supply functions, derive the initial equilibrium price and the after-tax equilibrium price. (Enter all responses using real numbers rounded to two decimal places) The equilibrium price is initially per kg.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the market for pork illustrated in the graph. Suppose demand (D') is
Q = 225 - 25p
and initial supply (S') is
Q = 70 + 40p
and that a $2.30 tax is charged to producers, shifting the supply curve to S.
Using the pork demand function and the original and after-tax supply functions,
derive the initial equilibrium price and the after-tax equilibrium price.
(Enter all responses using real numbers rounded to two decimal places)
s'
The equilibrium price is initially $ per kg.
P2
P1
D'
Q2 Q1
Q, Million kg of pork per year
tv
MacBook Air
P. $ per kg](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb74d90c5-5c68-43c7-8397-8c6a8b6c7e92%2F1db93ba7-6c85-4c38-9ba8-a570257e2bc9%2Fx3b83xn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the market for pork illustrated in the graph. Suppose demand (D') is
Q = 225 - 25p
and initial supply (S') is
Q = 70 + 40p
and that a $2.30 tax is charged to producers, shifting the supply curve to S.
Using the pork demand function and the original and after-tax supply functions,
derive the initial equilibrium price and the after-tax equilibrium price.
(Enter all responses using real numbers rounded to two decimal places)
s'
The equilibrium price is initially $ per kg.
P2
P1
D'
Q2 Q1
Q, Million kg of pork per year
tv
MacBook Air
P. $ per kg
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