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

Closesubstitute goods, Closesubstitute goods: The number of closesubstit...

Closesubstitute goods: The number of closesubstitute goods The more substitutes of good has and the more close the substitutes are, the more elastic the demand for the good. Fo

Labor deman, Discuss two factors that would increase demand for labortion.....

Discuss two factors that would increase demand for labortion..

Opportunity cost, explain the relationship between scarcity,choice and opp...

explain the relationship between scarcity,choice and opportunity cost

Natural rate of unemployment, Natural Rate of Unemployment: According to ne...

Natural Rate of Unemployment: According to neoclassical economics, wage rate is determined by a process of labour-market clearing (in which employers and workers compete with each

Balancing formulas, How do I balance this chemical equation: MgSO4*5H2O

How do I balance this chemical equation: MgSO4*5H2O

Molar mass, How to determine the number of moles of butane by your number o...

How to determine the number of moles of butane by your number of moles of butane? using (PV=nRT)

Withdrawing mrtp restrictions, Withdrawing MRTP Restrictions: The res...

Withdrawing MRTP Restrictions: The restriction on the scrutiny of an investment proposal that it does not violate the provisions of MRTP Act was withdrawn. This freed big bus

Simple human capital model, Question 1: i) Use a simple human capital m...

Question 1: i) Use a simple human capital model to explain the rationale for undertaking higher education. ii) Why do some people vary significantly in the amounts of human

Write Your Message!

Captcha
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