Find the free market equilibrium price and quantity

Reference no: EM13696190

Suppose demand is given by Qd(p)=99-2p, and supply is given by Qs(p)=p

1. Find the free market equilibrium price and quantity.

2. Now consider government imposes a $3 quantity tax on transaction. Find the new market equilibrium prices and quantity. Compute buyer and seller's tax burden, respectively.

Reference no: EM13696190

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