Suppose you are given the following information:
Qs =100+3P Qd =400–2P
where Qs is the quantity supplied, Qd is the quantity demanded and P is
a. From this information compute
b. Now suppose that a tax is placed on buyers so that Qd =400–(2P+T)where T is taxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers).
c. The income
d. Years ago, Ricky paid $500 for CDs to put together a collection. Today, he sold his CDs for $200. How does this sale affect current
PLEASE NOTE THAT QUESTIONS a-c WERE PREVIOUSLY SUBMITTED and question d was mistakenly omitted from that submission so I only need help with question d.
Step by step
Solved in 2 steps
