Consider the market for pork illustrated in the graph. Suppose initial demand (D¹) is Q=280-20p and supply (S¹) is Q=85 +40p and that a $2.75 tax is charged to consumers, shifting the demand curve to D². Using the original and after-tax pork demand functions and the supply function, derive the initial equilibrium price and quantity and the after-tax equilibrium price and quantity. (Enter all responses using real numbers rounded to two decimal places) The equilibrium price is initially $ per kg. (...) p, $ per kg P₁ P₂ 0₂. e₁ D² D¹ Q₂ Q₁ Q, Million kg of pork per year

Consider the market for pork illustrated in the graph. Suppose initial demand (D¹) is Q=280-20p and supply (S¹) is Q=85 +40p and that a $2.75 tax is charged to consumers, shifting the demand curve to D². Using the original and after-tax pork demand functions and the supply function, derive the initial equilibrium price and quantity and the after-tax equilibrium price and quantity. (Enter all responses using real numbers rounded to two decimal places) The equilibrium price is initially $ per kg. (...) p, $ per kg P₁ P₂ 0₂. e₁ D² D¹ Q₂ Q₁ Q, Million kg of pork per year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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