Saturday
April 18, 2015

Homework Help: Microeconomics

Posted by Diane on Monday, July 28, 2008 at 5:25pm.

This is a 5 part question; (a-e)The question reads: Suppose that a market is described by the following supply & demand equations: Qs=2P & Qd=300-P
a) Solve for the equalibrium price & quantity. (I think I understand this process.)
b)Suppose that a tax of T is placed on buyers so the new demand equation is:
Qd=300-(P+T). Solve for new equalib. What happens to the price received by seller, the price paid by buyers, & qty sold?
c)Tax revenue is T x Q. Use your answer to part (b) to solve for tax revenue as a function of T.
d) Graph the DWL
e) Gov't levies a tax on good of $200/unit. Is this a good policy? Why/Why not? Can you propose a better policy?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

supply and demand - I'm looking for help on the third part of this question. I'...
economics - Suppose the supply and demand for milk is described by the following...
Economic - The market for Good X can be depicted with the following demand and ...
economics - 1. Suppose that the market of laptops is given by following supply ...
Economics - Hi, The demand for inflatable garden gnomes is given by P = 300 2Q...
Microeconomics - For this part of the assignment, we will focus on the demand ...
economics - Suppose the demand and supply for milk are described by the ...
Microeconomics (full version) - Pharmaceutical drugs have an inelastic demand, ...
Microeconomics - Suppose Intel Inc. and other chip makers utilize a new ...
Finite Math - The quantity demanded each month of russo Espresso Makers is 250 ...

Members