Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
Problem 3TY
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dc53963-6433-44c4-929c-f7c52790e0bf%2F552ca8e2-56b2-415b-91d9-a876075da914%2Fxjp2ry9_processed.png&w=3840&q=75)
Transcribed Image Text: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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