Compute numerically the equilibrium quantity, economics, Microeconomics

Compute numerically the equilibrium quantity, economics, Microeconomics

Assignment Help:

You are examining the effects of a specific tax of 10 cents imposed on the sales of a product that we shall call XYZ. To carry out your analysis, assume that the market is a perfectly competitive one. You are provided with the following data:

(1) Economists have estimated the demand function for product XYZ to be:

QD = 20 – 0.50 P

Where P is the price of the product (in cents) and QD is the quantity demanded (in thousands).

(2) The supply curve for the product XYZ has been estimated to be:

QS = 0.50 P

Where QS is the quantity supplied of XYZ (in thousands).

Please answer the following:

(1) Compute numerically the equilibrium quantity sold of XYZ and the equilibrium price before the tax.

Related Discussions:- Compute numerically the equilibrium quantity, economics

Determine the economic profit, Johnson Farms owns valuable farm land that a...

Johnson Farms owns valuable farm land that allows it to produce wheat at a lower cost than its competitors. The company reports large profits each year on its accounting statements

Consumer theory, what are the similarities and differences of marginal prod...

what are the similarities and differences of marginal productivity and marginal utility

Impacts on the mauritian economy, Problem: (a) Define money and briefl...

Problem: (a) Define money and briefly explain its core functions. (b) Explain the relationship between interest rate and price of bonds, illustrate using example. (c)

Q=8L^1/2, what is the profit maximising quantity of L

what is the profit maximising quantity of L

Internal rate of return, If, for a specific project alternative, the discou...

If, for a specific project alternative, the discount rate equals the Internal Rate of Return, then the (discounted) Benefit Cost Ratio will equal unity (i.e., BCR=1.0). Define I

Explain monetarist and monetary policy, Explain Monetarist and Monetary pol...

Explain Monetarist and Monetary policy Monetarist: A group of economists who believe that alters in the money supply are the most effective instrument of government economi

Molecular orbital theory, Discuss MO theory in detail?

Discuss MO theory in detail?

I am concerned that if we get into price war with Ev, I am concerned that i...

I am concerned that if we get into price war with Everest Solution

Benefits of education, Normal 0 false false false EN-IN...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Income and substitution effects: normal good, Income and Substitution Effec...

Income and Substitution Effects: Normal Good * The Special Case--The Giffen Good - The income effect may be large enough theoretically to cause the demand c

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

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