Find the equilibrium price and quantity. suppose buyers, Ask an Expert

Economics

Suppose supply is P = 40 + Q while demand is P = 70 - Q/2.

a. Find the equilibrium price and quantity.

b. Suppose buyers must pay a tax of T = 12/unit. Determine the quantity exchanged, and prices for buyers and sellers.

c. How is the tax burden split between buyer and seller?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M970752

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Pricenbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbs

Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 8 40 50 10 32 45 12 24 30 14 1 ...

Question does money has opportunity costs and if so why

Question: Does money has opportunity costs? And if so why still people hold money?How can we determine monetary demand in respect to income? The response must be typed, single spaced, must be in times new roman font (siz ...

Quesiton suppose there are two individuals and two goods

Quesiton: Suppose there are two individuals and two goods. The initial endowments are ?1 = (1, 0) and ?2 = (1, 1). Preferences are given by u1(x, y) = x + y and u2(x, y) = y (a) Prove that in equilibrium-if it ever exist ...

Question to solve the congestion problems of the big cities

Question: To solve the congestion problems of the big cities, Congress decides to increase the Federal gasoline tax by 25 c per gallon, with a rebate to largely rural states; the net effect will raise approximately $20 b ...

Question draw the offer curves for nation 1 and nation 2

Question: Draw the offer curves for Nation 1 and Nation 2, showing that Nation 2 is a small nation that trades at the pretrade-relative commodity prices in Nation 1. How are the gains from trade distributed between the t ...

Question again our seller starts with demand q 12 - p and

Question: Again our seller starts with demand Q = 12 - P and marginal production costs of $4 per unit. The seller's transaction cost is $1 per unit, and buyers' are $2 per unit. a. Show that profit-maximizing output is 2 ...

Question a firm is currently producing 30 units of output

Question: A firm is currently producing 30 units of output. At this level of output produced: Its average total cost is 110 (ATC =110) The market price per unit of output is 125 MR= 30 MC = 50 A) Is this firm making prof ...

Question draw two supply and demand graphs one for each

Question: Draw two Supply and Demand graphs (one for each problem) and show what happens to price and quantity a. in the market for chocolate ice cream when new technology improves production. b. in the market for cigare ...

Question andrew has 12000 that he will invest to have a

Question: Andrew has $12,000 that he will invest to have a down payment in 24 years for a vacation home. Assuming he can earn 8% on his investment how much would he have at the end of 24 years? The response must be typed ...

Question a there are some status goods like rolex watches

Question: A. There are some "status goods," like Rolex watches, that people want to own because they are expensive. In contradiction to the law of demand, if Rolex watches were less expensive, few "status-seeking" consum ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert