The demand and supply functions for three (03) goods are given as follows: Dx = 100-3Px+Py+3Pz Dy = 80+Px-2Py-Pz Dz = 120+3Px-Py-4Pz Sx = -10+Px Sy = -20+3Py Sz = -30+2Pz The equilibrium prices and quantities of all three goods are: Px= 78.72  Qx= 68.72 Py= 23.66  Qy= 50.98 Pz= 60.42  Qz= 90.84 The government decides to:  impose a 25% Tax on X  impose a 5 Rs/unit Tax on Y When these above policies are jointly implemented. Analyse the impact on equilibrium prices and quantities.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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The demand and supply functions for three (03) goods are given as follows:

Dx = 100-3Px+Py+3Pz

Dy = 80+Px-2Py-Pz

Dz = 120+3Px-Py-4Pz

Sx = -10+Px

Sy = -20+3Py

Sz = -30+2Pz

The equilibrium prices and quantities of all three goods are:

Px= 78.72  Qx= 68.72

Py= 23.66  Qy= 50.98

Pz= 60.42  Qz= 90.84

The government decides to:

 impose a 25% Tax on X

 impose a 5 Rs/unit Tax on Y

When these above policies are jointly implemented. Analyse the impact on equilibrium prices and quantities.

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