Explain the market equilibrium quantity and price

Reference no: EM13196525

There are 10 identical consumers whose demand is D: p = 20 - 10q. There are 10 identical firms, each firm's marginal cost is MC(q)= 5 + 5q. The market is competitive.

a) derive the market demand function
b) derive the market supply function
c) what is the market equilibrium quantity and price?

An excise tax of $3 per unit is imposed on firms

d) analyze the tax incidence. That is, how is the $3 excise tax divided between the firm and the consumers?

for part a) would I just multiple the demand function given D: p=20 -10q by 10?

Reference no: EM13196525

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