Table 3. P Ps Qd tax Qs tax Qs $50 $70 240 $10 140 $60 $60 $70 200 $10 200 $60 $70 $70 160 $10 260 $60 $80 $70 120 $10 320 $60 20 $90 $70 80 $10 380 $60 80 $100 $70 40 $10 440 $60 140 $110 $70 $10 $60 500 200 At what price does the market reach equilibrium when the price of the substitute good equals $70 and the tax equals $60? Did the equilibrium price rise by $50, the increase in the tax? Explain how prices coordinate the behavior of buyers and sellers in markets.
Table 3. P Ps Qd tax Qs tax Qs $50 $70 240 $10 140 $60 $60 $70 200 $10 200 $60 $70 $70 160 $10 260 $60 $80 $70 120 $10 320 $60 20 $90 $70 80 $10 380 $60 80 $100 $70 40 $10 440 $60 140 $110 $70 $10 $60 500 200 At what price does the market reach equilibrium when the price of the substitute good equals $70 and the tax equals $60? Did the equilibrium price rise by $50, the increase in the tax? Explain how prices coordinate the behavior of buyers and sellers in markets.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Table 3.
Ps
Qd
tax
Qs
tax
Qs
$50
$70
240
$10
140
$60
$60
$70
200
$10
200
$60
$70
$70
160
$10
260
$60
$80
$70
120
$10
320
$60
20
$90
$70
80
$10
380
$60
80
$100
$70
40
$10
440
$60
140
$110
$70 o
$10
$60
200
500
At what price does the market reach equilibrium when the price of the substitute good equals $70 and the tax equals
$60? Did the equilibrium price rise by $50, the increase in the tax? Explain how prices coordinate the behavior of buyers
and sellers in markets.
P.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F678871fc-66c5-4eb2-b59e-cfd6366f1eb1%2Fcbaaa28b-3364-4e95-9b53-d338a1709a45%2Fqhx61fm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Table 3.
Ps
Qd
tax
Qs
tax
Qs
$50
$70
240
$10
140
$60
$60
$70
200
$10
200
$60
$70
$70
160
$10
260
$60
$80
$70
120
$10
320
$60
20
$90
$70
80
$10
380
$60
80
$100
$70
40
$10
440
$60
140
$110
$70 o
$10
$60
200
500
At what price does the market reach equilibrium when the price of the substitute good equals $70 and the tax equals
$60? Did the equilibrium price rise by $50, the increase in the tax? Explain how prices coordinate the behavior of buyers
and sellers in markets.
P.
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