Answered: Suppose demand is given by Q-32-P and…

Suppose demand is given by Q-32-P and supply by Q=P+2. A 50% sales tax is imposed. What is the equilibrium price and quantity after tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose demand is given by Q=32-P and supply by Q=P+2. A 50% sales tax is imposed. What is the equilibrium price and quantity after tax?
Multiple Choice
O
O
O
O
Q=17; P=15
Q=15; P=17
Q=18; P=14
Q=14; P=18

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