Supply and demand equation

Assignment Help Business Economics
Reference no: EM131449493

Suppose that a market is decribed by the following supply and demand equation:

Qs = 2P

Qd = 300 -P

a. Solve for the equilibrium price and the equilibrium quanity.

b. Suppose that a tax of T is placed on buyers, so the new demand equatioin is

Qd = 300 - (P +T)

Solve for the new equilibrium. What happens to the price received by the sellers, the price paid by uyers, and the quanity sold.

Reference no: EM131449493

Questions Cloud

Analyze marketing environment by conducting a swot analysis : MNGT501 - Analyze the marketing environment of the chosen organization by conducting a SWOT/PESTLE analysis.
How would you conceptualize maria case : Maria is a 19-year-old college student in her sophomore year. How would you conceptualize Maria's case
About financial statement analysis is most correct : Which of the following statements about financial statement analysis is most correct?
Write a brief summary of the article and your thoughts : Write a brief summary of the article and your thoughts on the subject. You many answer questions like: Do you agree with the article?
Supply and demand equation : Suppose that a market is decribed by the following supply and demand equation:
Current ratio-current liabilities : CURRENT RATIO The Stewart Company has $1,365,000 in current assets and $614,250 in current liabilities.
Expansionary fiscal policy increases budget deficit : Expansionary fiscal policy increases budget deficit, the resulting increase in aggregate demand could be inflationary.
Determining the kind of monetary policy : 1. If you were the President of this country, which component of GDP (C, I, G, or NX) would you focus on to encourage growth? Why?
Develop a powerpoint on life span development : Develop a PowerPoint on life span development from infancy to late adulthood.

Reviews

Write a Review

Business Economics Questions & Answers

  Fast-food restaurants post nutrition warning labels

State whether each of the following events will cause a movement along the demand curve for Big Mac or whether it will cause the demand curve for Big Mac to shift? If the demand curve shifts, indicate whether it will shift to the left or to the right..

  A recent study determined the elasticities

A recent study determined the following elasticities for Volkswagen Beetles:

  Bureau of labor statistics employed category

Who of the following is not in the Bureau of Labor Statistics' "employed" category?

  Find the competitive equilibrium price and industry output

Suppose 100 indentical firms produce in an initial competitive market: Find the competitive equilibrium price, industry output, and firm output. If they form a cartel what would be the profit maximization output and price.

  Test the null hypothesis of no seasonality

The following estimated equation was obtained by OLS regression using quarterly data for 1958 to 1976 inclusive: Yt = 2.20 + 0.104X1t − 3.48X2t + 0.34X3t. (3.4) (0.005) (2.2) (0.15) Standard errors are in parentheses. Define the seasonal dummy variab..

  Enterprise resource planning-software and installation

The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year eve..

  European union is most advanced form of regional integration

Although the European Union (EU) is the most advanced form of regional integration, it is currently facing a challenging time. What are some major challenges facing the EU?

  Heterogeneous marginal abatement costs

There are 3 firms producing mercury emissions, with heterogeneous marginal abatement costs: Suppose the EPA adopts a command-and-control regulation permitting each firm to emit just 20 tons per year. i) Calculate the cost of compliance for each of th..

  Imagine waste processing plant that causing air pollutiion

Imagine a waste processing plant that is causing air pollution (measured in tons per year), and has marginal abatement costs given by MAC1 = 100 – 0.005E1. What level of emissions will the waste plant choose?

  Monetary policies instituted during the recession

Why do some economists believe the Fed needs to unwind monetary policies instituted during the recession? What is the risk in doing so?

  Develop four paragraphs that explain one strength

The weekly worksheets will help you build all of the necessary parts for your Final Paper. It is recommended that you review the Learning Activity assignments and review the Final Paper prompt before beginning this assignment

  Control legislative process-enacts regulatory procedures

If physicians can gain large per capita wealth effects from state regulation and consumers can gain relatively small per capita wealth effects from state regulation, which of the two groups does the economic theory of regulation suggest will control ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd