Consider the market for pork illustrated in the graph. Suppose demand (D') is Q = 250 - 20p and initial supply (S') is Q = 70 + 30p and that a $2.00 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. Pi After the tax, the new equilibrium price is $ per kg. Q. Million kg of pork per year P. S per kg
Consider the market for pork illustrated in the graph. Suppose demand (D') is Q = 250 - 20p and initial supply (S') is Q = 70 + 30p and that a $2.00 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. Pi After the tax, the new equilibrium price is $ per kg. Q. Million kg of pork per year P. S per kg
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
Problem 2MC
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Question
![Consider the market for pork illustrated in the graph. Suppose demand (D') is
Q = 250 - 20p
and initial supply (S') is
Q = 70 + 30p
and that a $2.00 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)
e2
The equilibrium price is initially $ per kg.
P2
P1
After the tax, the new equilibrium price is $ per kg.
D1
Q. Million kg of pork per year
React
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P. $ per kg
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Transcribed Image Text:Consider the market for pork illustrated in the graph. Suppose demand (D') is
Q = 250 - 20p
and initial supply (S') is
Q = 70 + 30p
and that a $2.00 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)
e2
The equilibrium price is initially $ per kg.
P2
P1
After the tax, the new equilibrium price is $ per kg.
D1
Q. Million kg of pork per year
React
O etv
MacBook Air
80
DII
DD
F1
F2
F3
F4
F6
F7
FB
F9
F10
F1
!
@
23
$
&
1
2
3
4
7
8.
Q
W
R
T
Y
{
A
S
F
G
J
K
Z
C
く
tion
command
command
option
.. .-
P. $ per kg
コ
エ
B
D
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