Find the equilibrium price and output as functions

Reference no: EM131490562

Question: Suppose that the demand curve for a particular commodity is QD = a - bP, where QD is the quantity demanded, P is the price, and a and b are constants. The supply curve for the commodity is Qs = c + dP, where Qs is quantity supplied and c and d am constants. Find the equilibrium price and output as functions of the constants a, b, c, and d. Suppose now that a unit tax of u dollars is imposed on the commodity. Show that the new equilibrium is the same regardless of whether the tax is imposed on producers or buyers of the commodity.

Reference no: EM131490562

Questions Cloud

What are the multiple ways you might solve this problem : JWI 580: Business Analytics Assignment: Case Study Brief. For this assignment, you will take on the role of an employee of health company CSP.

Analyze the effects of the same tax : For commodity X, average cost is equal to marginal cost at every level of output Assuming that the market for Xis competitive and the demand curve is linear.

Compute how the tax affects the price paid by consumers : Use a general equilibrium framework to discuss the possible incidence of a tax on cigarettes.

How much exhaust heat is discharged per hour : If the plant produces electric energy at the rate of 1.3 GW, how much exhaust heat is discharged per hour?

Find the equilibrium price and output as functions : Suppose that the demand curve for a particular commodity is QD = a - bP, where QD is the quantity demanded, P is the price, and a and b are constants.

Explain three differences between dna and rna : Examine three differences between DNA and RNA then explain two main reasons why DNA is the most favorable molecule for genetic material.

Sky diver steps from a hight-flying helicopter : A sky diver steps from a hight-flying helicopter. If there were not air resistance, how fast would she be falling at the end of a 12 second jump?

Evaluate marginal tax rate at each persons current income : Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.

Enhanced sense of hearing versus : What might be the advantages and disadvantages of having an enhanced sense of hearing versus that of sight?

User Account

All Pages