Compute the competitive equilibrium price and quantity

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Consider a market with demand function D(p) = 1000 ? 10p and aggregate supply function S(p) = ? 200 + 20p if p ? 10 [and S(p) = 0 otherwise]. (a) Compute the competitive equilibrium price and quantity, as well as the equilibrium value of consumer surplus (CS) and producer surplus (PS). (b) Suppose that a unit tax t = 15 is imposed in this market. Compute the new equilibrium price and quantity, as well as CS, PS, tax revenue and the deadweight loss due to the taxation

Reference no: EM13733426

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