Q.2 Consider the following demand and supply model Q' -v. -v,(P+1)+V,m Q' - -8, +8,(P+s) Where m is income/wealth, t is the tax rate and s is rate of subsidy which are exogenous. a. Find equilibrium price and quantity b. Find government total tax collection r c. Assuming Q' -Q' -Q write the above model in matrix form

Q.2 Consider the following demand and supply model Q' -v. -v,(P+1)+V,m Q' - -8, +8,(P+s) Where m is income/wealth, t is the tax rate and s is rate of subsidy which are exogenous. a. Find equilibrium price and quantity b. Find government total tax collection r c. Assuming Q' -Q' -Q write the above model in matrix form

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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