Compute the equilibrium price and quantity

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Reference no: EM13684679

1. Discuss the law of demand. Graph the following demand- supply equations: Qd= 100- 0.5P Qs = P

2. Compute the equilibrium price and quantity. Discover the excess demand, if the price is set at $50.

3. Presume the government imposes a tax ($2/unit) on the seller. Decide the new equilibrium price and quantity.

4. Compute the amount of tax revenue, and show it on a diagram.

Reference no: EM13684679

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