Suppose demand and supply are given by ? = 500-2P and ? =-100+3P a) Which function is the demand function and why? b) Compute the equilibrium price and quantity in this market?
Suppose demand and supply are given by ? = 500-2P and ? =-100+3P a) Which function is the demand function and why? b) Compute the equilibrium price and quantity in this market?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose
? = 500-2P and ? =-100+3P
a) Which function is the demand function and why?
b) Compute the
c) Compute the
d) Suppose a GHC 1 exercise tax is imposed on the good. Determine the new
equilibrium price and quantity.
e) Compute the tax revenue to the government.
f) Compute the
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