Supply and demand equations

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Reference no: EM131424838

Suppose the market for fine dining in Los Angeles is described by the following supply and demand equations:

Qs = 3P

Qd = 400 - P

Suppose a Tax of T is placed on restaurant goers, so the new demand equation is

Qd=400-(P + T)

solve for the equilibrium and state (1) the price received by restaurant owners, (2) the price paid by restaurant goers, and (3) the quantity of restaurant meals sold.

Reference no: EM131424838

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