The demand and supply for bicycles is given by: Q = 1000 - 10P and supply is: Q³ = 2P - 20 6. Suppose the government imposes a 20% sales tax. What is the new equilibrium Price and equilibrium Quantity? a. Q*=85; P*=150 b. Q=150; P*=85 c. Q*=125.71; P*=87.43 d. Q*=87.43; P=125.71 e. None of the above

The demand and supply for bicycles is given by: Q = 1000 - 10P and supply is: Q³ = 2P - 20 6. Suppose the government imposes a 20% sales tax. What is the new equilibrium Price and equilibrium Quantity? a. Q=85; P=150 b. Q=150; P=85 c. Q=125.71; P=87.43 d. Q=87.43; P=125.71 e. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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