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.

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

Section: Chapter Questions

Problem 1QP

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Question

The demand and supply functions for three (03) goods are given as follows:

D_x = 100-3P_x+P_y+3P_z

D_y = 80+P_x-2P_y-P_z

D_z = 120+3P_x-P_y-4P_z

S_x = -10+P_x

S_y = -20+3P_y

S_z = -30+2P_z

The equilibrium prices and quantities of all three goods are:

P_x= 78.72 Q_x= 68.72

P_y= 23.66 Q_y= 50.98

P_z= 60.42 Q_z= 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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