Given the demand and supply functions for a particular commodity: QD 294.7-4.963P Qs 139.6 +21.34P Find the equilibrium price and quantity. Sketch the demand and supply functions, and the equilibrium points in the same graph. Suppose that and excise tax of P2 has been imposed on consumers, what will the new equilibrium quantity and price be?

Given the demand and supply functions for a particular commodity: QD 294.7-4.963P Qs 139.6 +21.34P Find the equilibrium price and quantity. Sketch the demand and supply functions, and the equilibrium points in the same graph. Suppose that and excise tax of P2 has been imposed on consumers, what will the new equilibrium quantity and price be?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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