Find the equilibrium price and quantity

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Reference no: EM131094473

Suppose you are given the following information about an industry:

Demand P = 10 - Q .

Supply P = Q - 4

where P is price in dollars per unit, and Q quantity in thousands.

a. Find the equilibrium price and quantity

b. Suppose the government puts a $1 tax on this commodity to reduce its consumption and raise government revenue. What would be the impact of this tax on the market? What would be the quantity demanded and what would be the revenue of the seller?

Reference no: EM131094473

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