Question 2
Assume that each of the markets below is initially in equilibrium. Then for each
market below, suppose that the indicated scenario occurs. Illustrate the effect of each
event in a diagram and indicate the effects on the
*Market: Tablets. Scenario: Consumers learn that laptops will be much more
heavily taxed starting with next year’s models
Question 4
A. The supply curve for televisions is given by QS=−4+2P where QS represents
the quantity of televisions supplied and P is the price of televisions. The market
demand for televisions is given by QD=66−3P where QD is the demand for
televisions. Find the equilibrium price and quantity of televisions.
B. Using the equations in part (a), calculate the
televisions when price changes to $20
C.
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