QXd = 14 - 0.5PX and QXs = 0.25PX - 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity (see video on inverse functions).

QXd = 14 - 0.5PX and QXs = 0.25PX - 1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity (see video on inverse functions).

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Description: QXd = 14 - 0.5PX and QXs = 0.25PX - 1a. Determine the equilibrium price and quantity. Show the equilibrium graphically.b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity (see video on inverse funct

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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Q_X^d = 14 - 0.5P_X and Q_X^s = 0.25P_X - 1

a. Determine the equilibrium price and quantity. Show the equilibrium graphically.

b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity (see video on inverse functions).

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