a) The market demand and supply schedule for Commodity X is as follows:Qd= 2000 - 60P and Qs= 400 + 20PWhat is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market? Use a diagram. Assuming that the Total Cost incurred by a firm is Rs 1100, what is the profit made if it sells only 65 units. Suppose the government imposes a tax of $ 8 per unit.With the help of a diagram, what will be the new equilibrium price, equilibrium quantity and show the effect on the consumer and on the producer. Justify your answer. Demand for X falls by 25% as a result of an increase in price of 10%. Calculate the elasticity of demand for the product.

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Answered: The market demand and supply schedule…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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a) The market demand and supply schedule for Commodity X is as follows:

Qd= 2000 - 60P and Qs= 400 + 20P

What is the Equilibrium Price (Rs) and quantity (units) demanded for X on the market? Use a diagram.
Assuming that the Total Cost incurred by a firm is Rs 1100, what is the profit made if it sells only 65 units.
Suppose the government imposes a tax of $ 8 per unit.

With the help of a diagram, what will be the new equilibrium price, equilibrium quantity and show the effect on the consumer and on the producer. Justify your answer.