Determine the equilibrium price and quantity. show the, Ask an Expert

Economics

Suppose demand and supply are given by

Qdx = 7 - ½Px and Qsx = ¼Px -½

a Determine the equilibrium price and quantity. Show the equilibrium graphically.

b Suppose a $6 excise tax is imposed on the good. Determine the new equilibrium price and quantity.

c How much tax revenue does the government earn with the $6 tax?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M967248

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