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

Externalities, What are externalities? Give an example of positive and nega...

What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

Utility functions, can you help me answer an economics question

can you help me answer an economics question

Slope of an iso-quant, Slope of an Iso-quant: Since along an iso-quant...

Slope of an Iso-quant: Since along an iso-quant the level of output remains the same, if θL units of θL are substituted for K units of K, the increase in output due to θ L

Cost function, what are the properties of cost function

what are the properties of cost function

Transactions and propose at least two strategies, a) Examine at least three...

a) Examine at least three (3) possible areas for the industry that could lead to transaction costs, and describe each in detail. b) Speculate about the behaviour that could

Health Reform, Healthcare Reform is currently in the news almost every day....

Healthcare Reform is currently in the news almost every day. The current approach proposes a government sponsored health insurance “market” to help control costs and make healthcar

Factors of production, The process of production needs several inputs. Thes...

The process of production needs several inputs. These inputs are known as the factors of production. In most cases, firms own some of the factors of production while some have to b

Quizzes, I need someone to do my quizzes it has 24 questions each. There ar...

I need someone to do my quizzes it has 24 questions each. There are a total of 11 quizzes

Macroeconomics explore and apply, the basic circular flow model suggests th...

the basic circular flow model suggests that...

THEORY OF PRODUCT PRICING, MONOPOLISTIC MARKET

MONOPOLISTIC MARKET

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