In Country Faraway, cigarettes are forbid,so people trade cigarettes in a black m The cigarette demand is QD = 12 − P , and the cigarette supply is Qs = 2P (a) Find the equilibrium price and quantity in the black market (b)If a price of 7 and 2 were charged what is the excess demand or supply at the given prices?
In Country Faraway, cigarettes are forbid,so people trade cigarettes in a black m The cigarette demand is QD = 12 − P , and the cigarette supply is Qs = 2P (a) Find the equilibrium price and quantity in the black market (b)If a price of 7 and 2 were charged what is the excess demand or supply at the given prices?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 5CQQ
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1. In Country Faraway, cigarettes are forbid,so people trade cigarettes in a black m The cigarette
(a) Find the
(b)If a price of 7 and 2 were charged what is the excess demand or supply at the given prices?
2.Explain
3. If the price falls from 6 to 4, the quantity demanded rises from 8000 to 12000.
a) Calculate the
b) What happens to turnover (Price * Quantity) due to the price change?
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