Demand and supply equations

Reference no: EM13684332

Presume that a market is described by the following demand and supply equations:

Q^S = 2P

Q^D = 300 – P

1. If the per unit amount of the tax is $3, what is the quantity sold after the tax is levied? (Answer is a whole number.)

2. If the per unit amount of the tax is $3, what is the price received by sellers after the tax is levied? (Answer is a whole number.)

Reference no: EM13684332

Questions Cloud

Additional future earnings rounded up to two decimal places : Assignment Presume that you are considering whether to enrol in a summer computer-training program that costs $2500. If you take the program, you will have to give up $1500 of earnings from your summer job. You decide that the program will increase y..

What is the problem presented in the article : What is the problem presented in the article?

The travels of the t-shirt in the global economy : In the book ''The Travels of the T-shirt in the Global Economy'' Is China's domination of the textile industry best described as a victory or a failure? Give three reasons for the United States domination of the global cotton industry.

Plot cost and revenue on the price-quantity axis : In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is a crucial notion to understand. Without it one cannot effectively analyze profits. ..

Demand and supply equations : Presume that a market is described by the following demand and supply equations:

Presume the equilibrium quantity in the market for widgets : Presume the equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $740 per month in tax revenue. We can conclude that the equilibrium..

Two independent binomial random variables : Presume we have two independent binomial random variables that both have success probability in a single trial of p. The random variable X denotes the number of successes in three trials, whereas the random variable Y represents the number of success..

What is the difference between the problem of evil : What is the difference between the problem of evil

Short-long run price elasticitys of demand for cigarettes : According to a study of US cigarette sales among 1955 and 1985, when the price of cigarettes was one percent higher, consumption would be 0.4 percent lower in the short run and 0.75 percent lowers in the long run (Becker et al., 1994). Compute the sh..

User Account

All Pages